Philippine inflation slowed to 6.2% in July from 6.4% in June, the Philippine Statistics Authority (PSA) reported on Wednesday, August 5. It was the lowest rate since March and marked a third straight monthly slowdown, after 6.8% in May and 6.4% in June.

The July figure fell within the Bangko Sentral ng Pilipinas' (BSP) forecast range of 5.6% to 6.6% for the month.

What eased

The PSA attributed the slowdown mainly to slower price increases in transport, education services, and restaurants and accommodation services.

  • Transport inflation slowed to 11.9% from 12.8% in June.

  • Food inflation held steady at 5.3%.

  • Core inflation, which excludes selected food and energy items, eased to 4.2%.

Food and non-alcoholic beverages accounted for the largest share of July's inflation at 32.1%, followed by housing, water, electricity, gas and other fuels at 26.8%.

Regional picture

Inflation in Metro Manila slowed to 4.4% from 4.9%, while areas outside the capital eased to 6.7% from 6.8%. Central Visayas posted the highest regional rate at 8.7%, and the Ilocos Region the lowest at 5.1%.

Despite the slowdown, inflation remains well above the government's target range of 2% to 4%.