BUSINESS
Advocates Philippines
Inflation For June 2023 Lower At 5.4 Percent
Wet and dry market. File Photo
The Philippines' headline inflation rate continued its deceleration trend, reaching a slower pace of 5.4 percent in June 2023 compared to 6.1 percent in May 2023. This marks the fifth consecutive month of slowing inflation and the lowest rate in the past 13 months. The average inflation rate for the first half of 2023 stood at 7.2 percent, while in June 2022, the inflation rate was higher at 6.1 percent.
The downward movement of headline inflation in June 2023 was primarily driven by slower annual increases in the heavily-weighted food and non-alcoholic beverages, which recorded a growth rate of 6.7 percent compared to 7.4 percent in the previous month.
The faster annual decrease in transport at -3.1 percent (compared to -0.5 percent in May 2023) also contributed to the overall slowdown in inflation. The housing, water, electricity, gas, and other fuels sector was the third major contributor to the deceleration, with a growth rate of 5.6 percent in June 2023, down from 6.5 percent in May 2023.
Several commodity groups also experienced slower inflation rates compared to the previous month. Alcoholic beverages and tobacco, furnishings, household equipment, routine household maintenance, health, recreation, sport and culture, and restaurants and accommodation services all recorded slower annual increments. On the other hand, personal care and miscellaneous goods and services exhibited slightly faster year-on-year growth during the month.
The top three commodity groups that contributed to the headline inflation in June 2023 were food and non-alcoholic beverages, housing, water, electricity, gas, and other fuels, and restaurants and accommodation services.
Food inflation at the national level continued to decelerate for the fifth consecutive month, reaching 6.7 percent in June 2023. The main drivers of this downward trend were lower annual growth rates in meat and other parts of slaughtered land animals, fruits and nuts, and sugar, confectionery, and desserts. However, higher inflation rates were observed in rice, fish and other seafood, and vegetables, tubers, plantains, cooking bananas, and pulses.
Excluding selected food and energy items, core inflation also decelerated to 7.4 percent in June 2023 from 7.7 percent in May 2023. Inflation in the National Capital Region (NCR) similarly slowed down to 5.6 percent from 6.5 percent in the previous month.
In areas outside NCR (AONCR), inflation also decelerated further to 5.3 percent in June 2023 from 6.0 percent in May 2023. The slowdown was primarily driven by a decrease in transport and slower growth in food and non-alcoholic beverages. Except for the MIMAROPA Region, all regions outside NCR recorded slower inflation rates in June 2023 compared to May 2023.
The downward movement of headline inflation in June 2023 was primarily driven by slower annual increases in the heavily-weighted food and non-alcoholic beverages, which recorded a growth rate of 6.7 percent compared to 7.4 percent in the previous month.
The faster annual decrease in transport at -3.1 percent (compared to -0.5 percent in May 2023) also contributed to the overall slowdown in inflation. The housing, water, electricity, gas, and other fuels sector was the third major contributor to the deceleration, with a growth rate of 5.6 percent in June 2023, down from 6.5 percent in May 2023.
Several commodity groups also experienced slower inflation rates compared to the previous month. Alcoholic beverages and tobacco, furnishings, household equipment, routine household maintenance, health, recreation, sport and culture, and restaurants and accommodation services all recorded slower annual increments. On the other hand, personal care and miscellaneous goods and services exhibited slightly faster year-on-year growth during the month.
The top three commodity groups that contributed to the headline inflation in June 2023 were food and non-alcoholic beverages, housing, water, electricity, gas, and other fuels, and restaurants and accommodation services.
Food inflation at the national level continued to decelerate for the fifth consecutive month, reaching 6.7 percent in June 2023. The main drivers of this downward trend were lower annual growth rates in meat and other parts of slaughtered land animals, fruits and nuts, and sugar, confectionery, and desserts. However, higher inflation rates were observed in rice, fish and other seafood, and vegetables, tubers, plantains, cooking bananas, and pulses.
Excluding selected food and energy items, core inflation also decelerated to 7.4 percent in June 2023 from 7.7 percent in May 2023. Inflation in the National Capital Region (NCR) similarly slowed down to 5.6 percent from 6.5 percent in the previous month.
In areas outside NCR (AONCR), inflation also decelerated further to 5.3 percent in June 2023 from 6.0 percent in May 2023. The slowdown was primarily driven by a decrease in transport and slower growth in food and non-alcoholic beverages. Except for the MIMAROPA Region, all regions outside NCR recorded slower inflation rates in June 2023 compared to May 2023.
Jul 5, 2023
