The country’s inflation rate eased to 6.2 percent in July, down from 6.4 percent in June, as lower transport costs and improving supply conditions tempered overall price pressures, the Department of Economy, Planning and Development (DEPDev) said Wednesday.
Data from the Philippine Statistics Authority showed the country’s year-to-date average inflation rate stood at 5 percent as of July.
The slowdown was driven largely by easing transport inflation, which declined to 11.9 percent in July from 12.8 percent in June, reflecting lower fuel prices and improved supply conditions.
Food inflation, meanwhile, remained steady at 5.3 percent, as lower meat prices and slower increases in vegetable prices offset faster rice inflation.
“Every peso saved from slower price increases means more room for the family budget for food, transport, education and other essential needs,” DEPDev Secretary Arsenio M. Balisacan said.
“While challenges remain, particularly in managing food price pressures, these results show that our interventions are making a difference in easing the impact on Filipino households,” he added.
The government said it would continue implementing targeted measures through the UPLIFT Committee to shield vulnerable sectors from inflation and other economic shocks, in line with the priorities outlined in President Ferdinand R. Marcos Jr.’s fifth State of the Nation Address.
Among the ongoing interventions are fuel assistance programs for the transport sector. As of July 24, the government had released P2.09 billion or 84 percent of the P2.5-billion Fuel Subsidy Program, benefiting 498,570 public utility vehicles.
An additional P356.1 million in fuel assistance had been distributed to 89,551 public utility vehicle drivers under the P10-per-liter Fuel Subsidy Program.
To strengthen food security and stabilize prices, the Department of Agriculture is set to complete 380 mechanical drying systems by 2027. The facilities are expected to expand post-harvest capacity, reduce grain losses, improve rice quality, increase farmers’ incomes, and strengthen the domestic rice supply.
The government also plans to intensify the distribution of seeds and fertilizers in water-abundant rice-producing areas in Southern Luzon, the Visayas, and Mindanao, while continuing assistance to farmers affected by drought to help minimize production losses.
Over the longer term, the government is pursuing reforms under the Philippine Energy Plan 2023–2050 to reduce the country’s dependence on imported fuel. These include accelerating renewable energy projects and ensuring the delivery of awarded power capacity in support of the target of adding 25 gigawatts of renewable energy capacity by 2035.
Balisacan said the government remains committed to sustaining the downward trend in inflation while improving the affordability of essential goods.
“While inflation is moving in the right direction, our work is far from over. We will continue advancing measures to keep essential goods affordable while creating more opportunities for a better quality of life,” he said.