July inflation increases to 6.4%

The country’s annual headline inflation for the month of July has continued its uptrend as it moved up further to 6.4 percent, from 6.1 percent in June 2022, an official said on Friday, 5 August.

This is the highest recorded inflation since October 2018 (6.9 percent), Philippine Statistics Authority (PSA) Undersecretary Dennis Mapa said in a press briefing.

“With this month’s inflation, the Philippines’ average inflation from January to July 2022 stood at 4.7 percent. In July 2021, the inflation rate was lower at 3.7 percent,” he added.

Moreover, Mapa added that the main source of the upward trend of the July 2022 inflation was the higher annual growth rate in the index for food and non-alcoholic beverages at 6.9 percent, from 6.0 percent in the previous month.

The transport index followed with 18.1 percent annual growth, from 17.1 percent in June 2022. 

“For food, particularly in fish, chicken, bread [loaf] and sugar [lower production]. For transport, in jeepney [fare hike],” Mapa added.

By food group, the increase in the inflation for fish and other seafood at 9.2 percent; meat and other parts of slaughtered land animals at 9.9 percent; and sugar, confectionery, and desserts at 17.6 percent contributed largely to the acceleration in the food inflation during the month.

The risk to the inflation outlook is tilted on the upside for 2022 and 2023 but is broadly balanced for 2024. Upside risks over the near-term continue to emanate from the higher global non-oil prices driven by the protracted war between Russia and Ukraine as well as from the potential second-round impact of higher oil prices on the prices of goods and services.

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