Inflation in the Philippines decreased to 6.2% in July, down from 6.4% in June, according to the Philippine Statistics Authority (PSA). This decline is attributed to lower oil prices, which have subsequently reduced transport costs.
Key Drivers Behind the Inflation Slowdown
The drop in inflation marks the third consecutive month of easing since it peaked in April, a period influenced by geopolitical tensions in the Middle East.
The slowdown in inflation is primarily due to a softer increase in transport costs, which eased to 11.9% in July from 12.8% in June.
Philippine Statistics Authority
Despite the positive trend in July, the year-to-date average inflation rate remains high at 5%, exceeding the Bangko Sentral ng Pilipinas’ (BSP) target of 3%. This figure reflects ongoing economic pressures as the country continues to recover from previous inflation spikes.
The BSP had projected inflation for July to fall within a range of 5.6% to 6.6%, making the actual figure of 6.2% a welcome surprise for economists.