The Philippines' inflation rate rises further to 6.4% in July 2022
The Philippine’s annual headline inflation continued its uptrend as it moved up further to 6.4 percent in July 2022, from 6.1 percent in June 2022. This is the highest recorded inflation since October 2018. With this month’s inflation, the Philippines’ average inflation from January to July 2022 stood at 4.7 percent. In July 2021, inflation rate was lower at 3.7 percent.
The main source of the upward trend of the July 2022 inflation was the higher annual growth rate in the index for food and non-alcoholic beverages at 6.9 percent, from 6.0 percent in the previous month. Transport index followed with 18.1 percent annual growth, from 17.1 percent in June 2022. Also contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups:
a. Alcoholic beverages and tobacco, 8.5 percent; b. Clothing and footwear, 2.5 percent; c. Furnishings, household equipment and maintenance, 3.1 percent; d. Recreation, sport and culture, 2.2 percent; e. Restaurants and accommodation services, 3.4 percent; and f. Personal care, and miscellaneous goods and services, 2.8 percent.
On the other hand, the annual mark-up in the indices of housing, water, electricity, gas and other fuels; and health decreased to 5.7 percent and 2.4 percent, respectively. The indices of information and communication, education services, and financial services, all maintained their inflation rates from their previous month’s rates.
At the national level, food inflation increased further to 7.1 percent in July 2022, from 6.4 percent in June 2022. Food inflation was lower in July 2021 at 4.2 percent.
By food group, the increase in the inflation for fish and other seafood at 9.2 percent; meat and other parts of slaughtered land animals at 9.9 percent; and sugar, confectionery and desserts at 17.6 percent contributed largely to the acceleration in the food inflation during the month.
Vegetables, tubers, plantains, cooking bananas and pulses registered lower inflation of 5.6 percent. The rest of the food groups exhibited faster annual growth rates of their indices.