Inflation for June hits three-year high of 6.1%

MANILA, Philippines, July 6 ------ The country’s headline inflation rate in June 2022 was at 6.1% according to the Philippine Statistics Authority (PSA) — a three-year high since November 2018’s 6.1% and October 2018’s 6.9%.

According to PSA’s report, inflation figures for June 2022 were higher than the 5.4% recorded in May 2022, and compared to June 2021’s 3.7%. PSA said that the higher inflation rate was brought by higher annual growth rate in the prices of food and non-alcoholic beverages which saw a rise from 4.9% in May 2022 to 6.0% in June 2022. Transportation costs meanwhile rose from 14.6% in May 2022 to 17.1% in June. “The uptrend of inflation for June 2022 was primarily brought about by the higher annual growth rate in the index for food and non-alcoholic beverages at 6.0%, from 4.9% in the previous month. This was followed by transport whose index grew by 17.1% annually, from 14.6% in May 2022,” PSA said.

Inflation for raw food items also rose dramatically, like fruits and nuts food products which ballooned to 1.1% compared to May 2022’s -2.4%. “Meanwhile, inflation for food at the national level rose further to 6.4% in June 2022, from 5.2% in May 2022. In June 2021, food inflation was lower at 3.9%. The acceleration in the food inflation was primarily influenced by the higher annual growth in the meat and other parts of slaughtered land animals index at 8.1%,” PSA noted. “Also contributing to the uptrend in the food inflation was fruits and nuts food group which registered an inflation rate of 1.1%, from -2.4% in the previous month,” it added.

PSA also said that prices went up for the following commodities and services:

• Alcoholic beverages and tobacco — 7.8%

• Clothing and footwear — 2.2%

• Housing — water — electricity — gas and other fuels — 6.6%

• Furnishings — household equipment and routine household maintenance — 2.9%

• Health — 2.6%

• Recreation — sport and culture — 1.9%

• Personal care — and miscellaneous goods and services — 2.6%

For the National Capital Region (NCR), the inflation rate also increased in June, at 5.6% from just 4.7% in the previous month. This is also way higher compared to a year-on-year basis, as the inflation rate in June 2021 for NCR was only at 2.6%. Similarly, increase in the prices food and transportation appeared to be the main drivers of high inflation rates. “The uptrend of inflation in NCR for the month of June 2022 was mainly attributed to the higher annual increase in the food and non-alcoholic beverages index at 6.1% in June 2022, from 4.6% in the previous month,” PSA noted. “This was followed by Transport index which grew by 17.2% annually,” it added.

The situation was almost similar for areas outside NCR (AONCR). “Following the trend of the Philippines and NCR, inflation in AONCR rose further to 6.3% in June 2022. In the previous month, inflation was registered at 5.5% and in June 2021, 4.0%,” PSA said. “The upward trend of inflation in AONCR in June 2022 was brought about by the higher inflation for food and non-alcoholic beverages at 5.9%, from 4.9% in the previous month. In addition, the transport index also contributed with 17.1% annual growth, from 14.7% in the previous month,” it added.

Source: inquirer.net