JULY 5, 2024 – As the country’s inflation rate dipped with the easing of energy and transport costs, the government reaffirms its steadfast commitment to address the issue of rising food prices and ensure food security for all, as stated by the National Economic and Development Authority (NEDA).

The Philippine Statistics Authority (PSA) reported today (July 5) that the country’s inflation rate eased to 3.7 percent in June 2024, down from 3.9 percent the previous month.

A significant factor contributing to this slowdown is the sharper deflation in electricity, which was recorded at -13.7% from -8.5%. This led to a reduction in the inflation rate of housing and utilities to a mere 0.1 percent in June, down from 0.9 percent in May.

In addition, transport inflation decelerated (3.1% from 3.5%) primarily due to lower inflation rates in personal transport (3.5% from 5.3%) and gasoline (2.3% from 5.2%). This decrease followed the additional rollback in gasoline prices in early June 2024.

“We are committed to maintaining the country’s inflation rate within our target range of 2 to 4 percent. The easing in our inflation rate in June, mainly due to lower electricity rates, highlights the importance of strengthening our energy sector to sustain our gains,” Balisacan said.

On the other hand, food inflation saw an increase to 6.5 percent in June, up from 6.1 percent in the previous month. This was mainly driven by higher prices of vegetables and meat. Vegetables recorded an inflation rate of 7.2 percent in June, up from 2.7 percent in May, as the onset of the rainy season affected supply.

The uptick in meat prices, with an inflation rate of 3.1 percent for the month compared to 1.6 percent the previous month, was due to higher pork (3.9% from 2.4%), chicken (2.4% from -0.3%), and beef (2.8% from 2.6%) inflation. Pork inflation rose amid the rise in active African swine fever cases. Chicken inflation increased as the temporary import ban on poultry products from the United States and Australia affected supply.

While rice inflation slightly declined, it remained high at 22.5 percent in June from 23.0 percent in May.

“We will continue to work closely with the government, stakeholders, and other priority sectors to implement necessary measures to ensure that the country will have a sufficient and affordable food supply—including rice—for every Filipino,” the country’s chief economic planner said.

In a press conference on June 27, the Development Budget Coordination Committee (DBCC) expressed its determination to achieve price stability and return to the country’s average inflation rate target range of 2.0 to 4.0 percent between 2025 and 2028.

The DBCC aims to reach this target by proactively implementing monetary policy measures and well-targeted government interventions that address the primary drivers of inflation.

“This includes implementing the new Comprehensive Tariff Program for 2024-2028 to improve the affordability of essential commodities amid the rising global prices, and the Food Stamp Program to mitigate the impact of elevated food prices on the poor and vulnerable sector,” the DBCC said in a statement.

“We also thank the Department of Social Welfare and Development (DSWD) for distributing PhP1.37 billion in cash assistance to farmers and fisherfolk affected by El Niño, with each recipient receiving PHP10,000 under the Ayuda sa Kapos ang Kita Program (AKAP). In addition to cash assistance, family food packs were also provided to the affected families and individuals nationwide,” Balisacan said.

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ERRATUM: The June 2024 NEDA media release (MR) on inflation initially quoted government inflation target range of 3-4 percent. The MR was updated to reflect the corrected target range of 2-4 percent.