Cheaper food and transportation costs contributed to the slowdown in inflation in June 2023, according to the Philippine Statistics Authority (PSA).
Inflation slowed to 5.4 percent in June, slower than the 6.1 percent posted in May 2023 and June 2022.
Core inflation also slowed to 7.4 percent in June 2023 from 7.7 percent in May 2023. However, this was still higher than the 3.1 percent posted in June 2022.
The downtrend of the overall inflation in June 2023 was primarily influenced by the slower annual increase in the heavily-weighted food and non-alcoholic beverages at 6.7 percent in June 2023 from 7.4 percent in the previous month.
Transportation costs contracted 3.1 percent during the month from a contraction of 0.5 percent in May 2023 also contributed to the downtrend of the overall inflation.
Housing, water, electricity, gas and other fuels was the third main source of deceleration of the headline inflation in June 2023 with 5.6 percent annual growth rate from 6.5 percent in May 2023.
PSA said food inflation at the national level continued to decelerate for the fifth consecutive month at 6.7 percent in June 2023.
In the previous month, food inflation was recorded at 7.5 percent, while 6.4 percent in June 2022.
The deceleration of food inflation in June 2023 was mainly brought about by the lower annual growth in meat and other parts of slaughtered land animals at 0.3 percent during the month from 3.2 percent in May 2023.
This was followed by fruits and nuts with an inflation of 11.4 percent in June 2023 from 14.3 percent in the previous month.
Also contributing to the downtrend of food inflation in June 2023 was the slower year-on-year growth of sugar, confectionery and desserts at 28.9 percent in June 2023 from 31.6 percent in the previous month.
Inflation in the National Capital Region (NCR) similarly moved at a slower pace in June 2023 at 5.6 percent from 6.5 percent in the previous month. In June 2022, inflation rate in the area was also recorded at 5.6 percent.
Following the trend of the Philippines and NCR, inflation in Areas Outside of NCR also decelerated further to 5.3 percent in June 2023 from 6 percent in the previous month. In June 2022, inflation in the area was higher at 6.3 percent.
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