Inflation remained painfully high in July, keeping the pressure on the Bangko Sentral ng Pilipinas to stay hawkish as rising prices squeeze Filipino households’ budgets.
Inflation, as measured by the Consumer Price Index (CPI), accelerated 6.4% year-on-year in July, faster than 6.1% recorded in June, the Philippine Statistics Authority reported Friday. It matched the upper-limit of the BSP’s 5.6-6.4% forecast range for July.
Based on 2018 prices, the latest CPI reading is the hottest since September 2018, when inflation sizzled to 6.9% amid a rice supply shortage and currency slump at the time. In the first 7 months of the year, inflation averaged 4.7%, dashing any further chances of meeting the government’s 2-4% annual target.
National Statistician Claire Dennis Mapa explained that food inflation, which jumped 6.9% year-on-year, accounted for 64% of the overall uptrend last month. Higher prices of fish (particularly tilapia), chicken and sugar were the main drivers of food inflation during the month.
Meanwhile, transport inflation quickened at an annualized rate of 18.1% in July and was the second largest contributor to the overall increase in price. Mapa explained the PSA recorded more expensive fares for jeepney, sea and air travels.
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