Headline inflation in July rose to 4.4 percent from 3.7 percent in June, staying within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 4.0-4.8 percent for the month and aligning with the government’s annual target range of 3.0 percent ± 1.0 percentage point, with a year-to-date average of 3.7 percent.
Seasonally adjusted headline inflation increased from zero percent in June to 0.6 percent in July on a month-over-month basis. Meanwhile, the BSP said core inflation eased to 2.9 percent in July from the previous month’s rate of 3.1 percent year-on-year.
“The uptick in July inflation was traced mainly to non-food inflation, particularly higher electricity rates and upward adjustment in domestic prices of petroleum products,” the BSP said.
“Likewise, inflation for education services went up coinciding with the start of the school year. Food inflation also accelerated on faster price increases of meat and fruits, while rice inflation remained elevated,” the central bank added.
The latest inflation outturn is consistent with the BSP’s projections that inflation will temporarily rise above target in July but could follow a general downtrend beginning in August.
The Monetary Board will consider the latest inflation outturn as well as the Q2 2024 national accounts in its assessment of the inflation outlook and balance of risks in the August 2024 monetary policy meeting. Looking ahead, the BSP will ensure that monetary policy settings remain in line with its primary mandate of price stability conducive to sustainable economic growth.
