July inflation rose to 2.7%

August 5, 2020

Inflation in July rose to 2.7 percent from 2.5 percent in June as the economy resumed activity after a strict lockdown resulted in consumer demand.

This was the third straight month that inflation rose from 2.1 percent in May.

The Philippine Statistics Authority (PSA) said Wednesday higher transport costs, especially tricycles and ship fare; housing, water, electricity and fuel and miscellaneous goods and services, led by barbershops.

The PSA said tricycle fares rose 33.9 percent from the previous month; ship fares 27.7 percent from month-ago level and domestic airfare, up 12.6 percent from June's 0.2 percent.

The inflation of the transport index rose to 6.3 percent from 2.4 percent in the previous month. It accounts for 19.9 percent of the inflation rate.

Other commodity groups which rose were alcoholic beverages and tobacco at 19.3 percent; housing, water, electricity, gas, and other fuels, 0.8 percent; and restaurant and miscellaneous goods and services, 2.5 percent.

inflation for the food index at the national level continued to decelerate as it posted 2.5 percent in July 2020, from 2.7 percent in the previous month.

Inflation in the National Capital Region was higher at 2.2 percent in July from 2  percent in the previous month. The annual rate in the area was at 2.3 percent in July 2019.

Inflation in areas outside the National Capital Region moved up to 2.9 percent in July from 2.7 percent in June. In July 2019, inflation outside the NCR  was 2.4 percent.  DMS