The inflation rate in the month of June reduced to 2.7 percent, all time low since September 2017.
According to the report of the Philippine News Agency, “slower annual rate posted in the index of the heavily-weighted food and non-alcoholic beverages at 2.7 percent attributes influence in lowering the inflation rate in June.”
Moreover, National Statistician Claire Dennis Mapa stated during the press conference that rice prices drop. This has been the base effect of the implementation of rice liberation law.
Respectively, rice composed 9 percent of the food basket.
Inflation rates in the upcoming months are expected to diminish.
In the report from Business Mirror, Mapa identified that “vegetables, fish and meat still recorded high inflation rates of 9.5 percent; 3.8 percent; and 3.3 percent.”
Notably, 30 percent of the poorest family in the Philippines brought these food items.
According to Bangko Sentral ng Pilipinas (BSP), the inflation rates of the country in the first half of the year is at 3.4 percent. These rates remain within the target of 2-4 percent this year.
Other Factors in Affecting Inflation Rate
Apart from food items, which mainly contribute to inflation, Housing, Water, Electricity, Gas and Other Fuels accounted 3 percent.
Also, education index dropped by 4.5 percent. Mapa said that free education also influenced in slowing down inflation.
Health obtained the highest annual rate at 3.7 percent. Accordingly, recreation and culture registered at 3.2 percent.
Among the regions in the Philippines, Zamboanga Peninsula has the lowest inflation rate at 0.7 percent. MIMAROPA remained to obtain the highest at 5.2 percent.
- June inflation slows to 2.7% on base effects, rice liberalization law
- Inflation drops to 22-month low of 2.7% in June
- Summary Inflation Report Consumer Price Index (2012=100): June 2019