July inflation rate of 2.4% lowest since January 2017

August 6, 2019

Philippine inflation eased to 2.4 percent in July, its lowest since January 2017, the Philippine Statistics Authority (PSA) said Tuesday.

"This was the lowest inflation recorded since January 2017 and it was the same rate observed in July 2017," PSA Undersecretary Dennis Mapa said in a press briefing.

Mapa forecast lower inflation rate for the next months.

"Our expectation is that it will continue to go down or at least stabilize in the coming months," Mapa said. 

"The main drivers in the downward trend of inflation in July was food and non-alcoholic beverages," Mapa said. This is after the said group posted 1.9 percent slower annual rate. 

Major food items who had the largest price cut were rice; corn' oils and fats; vegetables; sugar, jam, honey, chocolate, and confectionery; and other food products. 

Mapa also explained that the price of rice dropped for three consecutive months. 

"The prices of rice last year was really high at this month, so we are seeing a drop and we are expecting a negative inflation," he explained. 

Among the second commodity group which contributed for the low inflation rate was housing, water, electricity, gas and other fuels with 2.2 percent annual increment. 

"Transport also contributed in the July 2019 inflation. The items that primarily contributed to the slower inflation were petroleum and fuels for personal transport equipment; jeepney fare; and domestic air fare," Mapa added. 

The inflation in the National Capital Region were also reported to be lower at 2.3 percent compared to 3.0 in July 2019.  6.5 and percent in July 2018. 

''The lowest inflation among the regions was recorded in Region VII (Central Visayas) at 1.1 percent, while the highest remained in MIMAROPA (Mindoro, Marinduque, Romblon, Palawan) Region at 4.9 percent," Mapa added. Cristina Eloisa Baclig/DMS