Overall inflation eases to 3.7% in June, but food prices still rising fast

MANILA, Philippines — Inflation in the Philippines decelerated to 3.7% in June from 3.9% in May, according to data released Friday by the Philippine Statistics Authority.

The slowdown was primarily driven by lower energy and transportation costs, providing some relief to consumers after four consecutive months of rising prices.

The inflation rate, which measures the pace of increase in the prices of goods an d services, has been a key concern for p olicymakers an d consumers alike .

The June figure brings the year-to-date average inflation to 3.5%, keeping it within the central bank's target range of 2% to 4% for the year .

A significant factor contributing to the inflation slowdown was the shar per deflation in electricity prices , which fell 13.7% in June compare d to an 8.5% decline in May, PSA Undersecretary Claire Mapa said at a briefing Friday.

This sector's inflation rate declined from 0.9% in May to 0.1% last month.

“Ang nag-contribute sa substantial overall inflation ay ang reduction ng price of electricity (The substantial reduction in the inflation rate was largely contributed by the decrease in electricity prices.),” Mapa said.

This led to a reduction in the housing and utilities inflation rate to 0.1% from 0.9% over the same period. Deflation refers to a decrease in the general price level of goods and services.

On June 17, power dsitributor Manila Electric Co. (Meralco) reduced its power rates by P1.9623 per kilowatt-hour (kWh) instead of the previously announced increase of P0.6436.

READ: Meralco rates down this month

The reduction, however, was only observed within the National Capital Region and that the impact on electricity inflation was not felt by consumers outside the region.

“Another factor is transport. Mababa ang presyo ng gasolina (Gasoline prices have gone down),” he added.

Transportation costs also played a role in easing inflationary pressures. The sector's inflation rate decelerated to 3.1% last month from 3.5% in May, primarily due to lower inflation rates for personal transport and gasoline. The decrease followed additional rollbacks in gasoline prices in early June.

Inflation in the restaurants and accommodation