(Eagle News) – The country’s inflation for June decelerated to 2.7 percent, becoming the lowest recorded since September 2017.
This was according to the Philippine Statistics Authority which noted that the inflation last May was higher at 3.2 percent.
If the inflation rate will be compared to June last year, the June 2018 inflation is much higher, or almost double, at 5. 2 percent.
“The slowdown of inflation in June 2019 was mainly driven by slower annual rate posted in the index of the heavily-weighted food and non-alcoholic beverages at 2.7 percent,” the PSA said in a statement released on Friday, July 5.
“Also contributing to the downtrend of the headline inflation were the slower annual increments in the indices of the following commodity groups:
• Alcoholic beverages and tobacco, 9.3%;
• Housing, water, electricity, gas, and other fuels, 3.0%;
• Furnishing, household equipment and routine maintenance of the house, 3.1%;
• Transport, 1.6%; and
• Communication, 0.3%.”
The PSA said that the education index dropped by 4.5 percent during the month. This “further triggered the downtrend in the inflation of June 2019,” it said.
But the PSA noted higher annual rates in the indices of health at 3.7 percent, and recreation and culture at 3.2 percent.
Excluding food and energy items, core inflation also slowed down at 3.3 percent in June 2019.
In May, the core inflation was registered at 3.5 percent. In June 2018, it was even higher at 4.3 percent.
There was also a “lower annual hike of 2.6 percent” noted in the country’s food index in June 2019.
“Its annual rate in May 2019 was higher at 3.2 percent and in June 2018, 5.8 percent,” PSA said.
“Annual changes in the indices of rice and corn dropped further by 1.7 percent and 4.0 percent, respectively. Other food groups had lower annual increase except for the indices of fruits and food products, not elsewhere classified whose annual gains were higher at 5.0 percent and 7.3 percent, respectively,” it explained.