June inflation eases to six-month low
The country’s headline inflation slowed down to 4.1 percent in June 2021, after recording an inflation of 4.5 percent for three consecutive months. This brings the Philippines’ average inflation for the first semester of 2021 at 4.4 percent. In June 2020, inflation was registered at 2.5 percent.
The slower pace in the inflation in June 2021 was primarily due to the lower annual rate of increase in the transport index at 9.6 percent, from 16.5 percent in May 2021. Moreover, inflation slowed down in the indices of the following commodity groups:
Alcoholic beverages and tobacco, 11.2 percent;
Clothing and footwear, 1.6 percent;
Health, 2.9 percent; and
Communication, 0.2 percent.
Meanwhile, inflation rates were higher in the indices of food and non-alcoholic beverages at 4.7 percent; housing, water, electricity, gas, and other fuels, 2.4 percent; and restaurant and miscellaneous goods and services, 3.9 percent.
The rest of the commodity groups retained their respective previous month’s annual growth rates.
Excluding selected food and energy items, core inflation, likewise, decelerated to 3.0 percent in June 2021, from 3.3 percent in May 2021. In June 2020, core inflation was posted at 3.0 percent.
Inflation for food index at the national level stood at its previous month’s annual rate of 4.9 percent in June 2021. In the same month of the previous year, inflation for food index was recorded at 2.7 percent.
There were mixed movements in the annual growth rates in the indices of food groups during the month.
Higher annual increases were observed in the indices of the following food groups:
Corn, 5.3 percent;
Fish, 8.7 percent;
Oils and fats, 4.2 percent;
Sugar, jam, honey, chocolate and confectionery, 1.0 percent; and
Food products, not elsewhere classified, 1.4 percent.
On the other hand, annual hikes slowed down in the indices of meat at 19.2 percent; and milk, cheese and egg, 1.0 percent. Other food groups exhibited annual decreases, except other cereals, flour, cereal preparations, bread, pasta, and other bakery products which retained its previous month’s annual rate of 1.8 percent.