Year-on-year headline inflation rose to 2.5 percent in June from 2.1 percent in the previous month and was within the BSP’s expected range of 1.9-2.7 percent for the month. The resulting year-to-date average inflation rate of 2.5 percent was within the Government’s target range of 3.0 percent ± 1.0 percentage point for the year. Core inflation—which excludes selected volatile food and energy items to measure underlying price pressures—increased marginally to 3.0 percent year-on-year in June from 2.9 percent in the previous month. Month-on-month seasonally-adjusted inflation accelerated to 0.4 percent in June from 0.3 percent in May.
Higher inflation in June compared to May was traced mainly to the increase in inflation for non-food items, alcoholic beverages and tobacco. Rising global oil prices were reflected in higher pump prices of most domestic petroleum products while tricycle fare hikes also led to higher inflation for transport services. Year-on-year inflation for alcoholic beverages and tobacco also continued to increase at double-digit rates during the month. The higher inflation was partially tempered by easing food inflation owing to slower increases in the prices of fish, fruits, and vegetables.
The latest inflation outturn remains consistent with the BSP’s prevailing assessment that inflation pressures remain limited, with baseline forecasts suggesting a benign inflation environment over the policy horizon. Going forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate.
Source: Bangko Sentral ng Pilipinas (BSP)