Inflation slowed to 6.2 percent in July from 6.4 percent in June as lower transport costs and improved supply conditions helped temper the rise in consumer prices, according to data released by the Philippine Statistics Authority (PSA).
The latest figure brought the country’s average inflation rate for the first seven months of the year to 5 percent.
National Statistician Dennis Mapa said the slower increase in transport costs was the main reason inflation eased in July.
Transport inflation declined to 11.9 percent from 12.8 percent in June, driven by slower increases in fuel prices.
Gasoline inflation slowed to 34.1 percent from 39.2 percent in the previous month, while inflation for road transport services slightly eased to 5.3 percent from 5.4 percent.
Food inflation, meanwhile, remained at 5.3 percent. Lower prices of meat and slower increases in vegetable prices helped offset faster increases in rice prices.
The Department of Economy, Planning, and Development (DEPDev) attributed the slowdown partly to government measures, including fuel subsidies for the transport sector.
As of July 24, the government had released P2.09 billion, or 84 percent of the P2.5-billion Fuel Subsidy Program, benefiting 498,570 public utility vehicles. Another P356.1 million in assistance was distributed to 89,551 public utility vehicle drivers under a separate fuel subsidy program.
“Every peso saved from slower price increases means more room for the family budget for food, transport, education and other essential needs,” DEPDev Secretary Arsenio Balisacan said.
“While challenges remain, particularly in managing food price pressures, these results show that our interventions are making a difference in easing the impact on Filipino households,” he added.
Despite the easing inflation, DEPDev said the government will continue implementing measures to help keep prices stable and protect vulnerable sectors.
Among these are expanding post-harvest facilities for rice production, increasing the distribution of seeds and fertilizers in key farming areas, and providing continued support to farmers affected by drought.
The government is also pursuing long-term energy reforms to reduce dependence on imported fuel by accelerating renewable energy projects under the Philippine Energy Plan 2023–2050.
“While inflation is moving in the right direction, our work is far from over. We will continue advancing measures to keep essential goods affordable while creating more opportunities for a better quality of life,” Balisacan said.
