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Advocates Philippines
Philippine Inflation Eases To 3.7% In June 2024 Amid Slower Price Increases In Key Commodities
Photo credit: BFAR
The Philippines' headline inflation rate eased to 3.7% in June 2024 from 3.9% in May, marking a continued decline from the 5.4% rate recorded in June 2023. This brought the national average inflation for the first half of 2024 to 3.5%.
Main Drivers of Inflation Deceleration
The primary factors for the June 2024 inflation downtrend include a significant slowdown in the annual increments for housing, water, electricity, gas, and other fuels, which decreased to 0.1% from 0.9% in May. Other contributing sectors include transport (3.1% down from 3.5%) and restaurants and accommodation services (5.1% down from 5.3%).
Notably, slower annual increments were also recorded in alcoholic beverages and tobacco (3.8% from 4.2%), clothing and footwear (3.2% from 3.4%), furnishings, household equipment, and routine household maintenance (2.8% from 3.1%), and personal care and miscellaneous goods and services (3.2% from 3.4%). Conversely, the food and non-alcoholic beverages index saw a higher annual increase of 6.1%, up from 5.8% in May.
Key Contributors to Inflation
The top contributors to the June 2024 overall inflation were food and non-alcoholic beverages, accounting for 61.9% of the total or 2.3 percentage points. This was followed by restaurants and accommodation services at 13.2% (0.5 percentage points) and transport at 7.5% (0.3 percentage points).
Food Inflation Trends
Food inflation rose to 6.5% in June from 6.1% in May 2024, although still lower than the 6.7% in June 2023. This increase was primarily driven by the faster rise in prices of vegetables, tubers, plantains, cooking bananas, and pulses, which saw a 7.2% increase in June, up from 2.7% in May. The meat index also increased to 3.1% from 1.6%.
Regional Inflation Rates
In the National Capital Region (NCR), inflation slowed to 2.3% in June 2024, down from 3.1% in May. In contrast, Areas Outside NCR (AONCR) maintained a steady inflation rate of 4.1% in June 2024, the same as in May. Despite the overall deceleration, the Bangsamoro Autonomous Region in Muslim Mindanao continued to record the highest regional inflation at 5.3%.
This decline in inflation reflects the broader stabilization of prices across key sectors, providing a positive outlook for economic stability in the Philippines as the nation progresses through the latter half of the year.
Main Drivers of Inflation Deceleration
The primary factors for the June 2024 inflation downtrend include a significant slowdown in the annual increments for housing, water, electricity, gas, and other fuels, which decreased to 0.1% from 0.9% in May. Other contributing sectors include transport (3.1% down from 3.5%) and restaurants and accommodation services (5.1% down from 5.3%).
Notably, slower annual increments were also recorded in alcoholic beverages and tobacco (3.8% from 4.2%), clothing and footwear (3.2% from 3.4%), furnishings, household equipment, and routine household maintenance (2.8% from 3.1%), and personal care and miscellaneous goods and services (3.2% from 3.4%). Conversely, the food and non-alcoholic beverages index saw a higher annual increase of 6.1%, up from 5.8% in May.
Key Contributors to Inflation
The top contributors to the June 2024 overall inflation were food and non-alcoholic beverages, accounting for 61.9% of the total or 2.3 percentage points. This was followed by restaurants and accommodation services at 13.2% (0.5 percentage points) and transport at 7.5% (0.3 percentage points).
Food Inflation Trends
Food inflation rose to 6.5% in June from 6.1% in May 2024, although still lower than the 6.7% in June 2023. This increase was primarily driven by the faster rise in prices of vegetables, tubers, plantains, cooking bananas, and pulses, which saw a 7.2% increase in June, up from 2.7% in May. The meat index also increased to 3.1% from 1.6%.
Regional Inflation Rates
In the National Capital Region (NCR), inflation slowed to 2.3% in June 2024, down from 3.1% in May. In contrast, Areas Outside NCR (AONCR) maintained a steady inflation rate of 4.1% in June 2024, the same as in May. Despite the overall deceleration, the Bangsamoro Autonomous Region in Muslim Mindanao continued to record the highest regional inflation at 5.3%.
This decline in inflation reflects the broader stabilization of prices across key sectors, providing a positive outlook for economic stability in the Philippines as the nation progresses through the latter half of the year.
Jul 5, 2024
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