Inflation eases to 2.7% in June
Credit to Author: Tempo Desk| Date: Fri, 05 Jul 2019 09:30:43 +0000
Inflation, the rate of increase in consumer prices, eased to its lowest level in almost two years last month due to cheaper rice as well as free tuition for students in state universities and colleges, the Philippine Statistics Authority said yesterday.
The country’s headline inflation settled at 2.7 percent last month, its lowest rate since September 2017, and weaker compared with 3.2 percent last May. The latest figure was also way lower than the 5.2 percent registered in the same period last year, National Statistician Claire Dennis S. Mapa said.
The June inflation brought the first semester average at 3.4 percent, well within the Duterte administration’s target of two to four 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.
Also contributing to the downtrend of the inflation were the slower annual increments in the indices of alcoholic beverages and tobacco at 9.3 percent; housing, water, electricity, gas, and other fuels at three percent; as well as furnishing, household equipment, and routine maintenance of the house at 3.1 percent.
Inflation on transport was also slower at 1.6 percent last month along with communication at 0.3 percent.
The cost of education dropped by 4.5 percent in June which further triggered the downtrend in inflation during the month. President Duterte signed Republic Act 10931 last year that provides free tuition in SUCs begging this year.
Mapa also said that the rice tariffication law which was implemented in March was a major contributor to lower prices of the staple food.
On the other hand, higher annual rates were registered in health at 3.7 percent; and recreation and culture, 3.2 percent.
Excluding selected food and energy items, core inflation exhibited a slower pace of 3.3 percent in June from 3.5 percent in the previous month and 4.3 percent a year before.
Along with the national level, inflation in Metro Manila moved at a slower pace of three percent last month from 3.4 percent in May and 5.8 percent in the same month a year ago. (Chino Leyco)