• Ziggurat Realestatecorp

PH Inflation cools to 4% in July

The headline inflation at the national level decelerated further to 4.0 percent in July 2021, from 4.1 percent in June 2021. This brings the country’s year-to-date inflation from January to July 2021 at 4.4 percent. Inflation in July 2020 was posted at 2.7 percent.





The main source of the downward trend of the July 2021 inflation was the lower annual increment registered in the transport index at 7.0 percent, from 9.6 percent in the previous month. Contributing also to the downward trend in the overall inflation were the slower annual increases recorded in the indices of the following commodity groups:

  • Alcoholic beverages and tobacco, 10.2 percent;

  • Furnishing, household equipment and routine household maintenance, 2.3 percent; and

  • Restaurant and miscellaneous goods and services, 3.6 percent.

Moreover, the annual rate of recreation and culture index dropped further to -0.7 percent during the month, from -0.6 percent in the previous month.


On the other hand, inflation rates were higher in the indices of the following commodity groups:

  • Food and non-alcoholic beverages, 4.9 percent;

  • Clothing and footwear, 1.7 percent;

  • Housing, water, electricity, gas and other fuels, 2.6 percent;

  • Health, 3.1 percent; and

  • Communication, 0.3 percent.

The index of education retained its previous month’s annual growth rate of 1.1 percent.


Excluding selected food and energy items, core inflation, likewise, slid further to 2.9 percent in July 2021, from 3.0 percent in June 2021. In July 2020, core inflation was observed at 3.3 percent.




Inflation for food index at the national level was higher at 5.1 percent in July 2021, from 4.9 percent in the previous month. In July 2020, inflation for food was posted at 2.5 percent.


The annual decline of -1.0 percent in rice index in July 2021 was smaller than its annual drop of -1.1 percent in the previous month. The annual rate of vegetables index also accelerated to 5.0 percent in July 2021, from an annual decrease of -2.7 percent in June 2021. In addition, annual upticks were higher during the month in the indices of corn at 6.4 percent; fish, 9.3 percent; and oils and fats, 4.4 percent.


Meanwhile, annual hikes were slower in the indices of the following food groups:

  • Other cereals, flour, cereal preparations, bread, pasta, and other bakery products, 1.7 percent;

  • Meat, 16.0 percent;

  • Milk, cheese and egg, 0.6 percent; and

  • Food products not elsewhere classified, 0.9 percent.

The rest of the food groups retained their previous month’s annual growth rates.


Source: PSA

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