THE country’s inflation slowed down for the sixth consecutive month to 4.7 percent in July 2023, registering its lowest rate since March 2022, according to the National Economic and Development Authority (NEDA).
According to the Philippine Statistics Authority, inflation moderated further in the previous month, dropping from 5.4 percent in June 2023. The deceleration was primarily due to slower food and non-food inflation.
“While we continue to experience a downtrend in inflation, we need to be vigilant, especially as we face increasingly volatile weather disturbances as well as external headwinds such as oil price increases and trade restrictions on food,” stated NEDA Secretary Arsenio M. Balisacan.
He assured the public that the government is proactively monitoring the supply and demand situation of key commodities to achieve its inflation target of 2 to 4 percent by the end of the year.
Food inflation decelerated to 6.3 percent in July 2023 from 6.7 percent in June, as inflation rates of the following food items slowed: fish and other seafood (4.5% from 6.2%), eggs & dairy products (9.7% from 11.2%), bread & other cereals (10.1% from 11.0%), and sugar (21.4% from 28.9%).
Meanwhile, non-food inflation further eased to 3.3 percent in July 2023 from 4.1 percent in June 2023. Inflation of electricity, gas, and other fuels slowed from 5.2 percent to 2.5 percent, while inflation for passenger transport services declined from 11.2 percent to 7.2 percent.
Non-food items, including food services, housing rentals, and passenger transport, remain the top contributors to inflation, contributing a total of 1.8 percentage points. On the other hand, agricultural commodities such as vegetables, rice, fish, and dairy products contributed a total of 1.5 percentage points.
To ensure that the current weather disturbances will not have a lingering impact on inflation and the economy for the rest of the year, Balisacan said that the government has proactively taken steps to deploy its resources to affected areas as well as prepare its policy and on-the-ground response as it expects more typhoons and weather disturbances from the El Niño.
“The government will implement necessary measures to prevent price spikes, protect the purchasing power of Filipino families, and sustain our economic recovery and momentum,” he added.
In light of global climate uncertainties and food supply challenges, the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) and the Economic Development Group (EDG) held a joint meeting last July 20, 2023 to discuss proposed policy adjustments that seek to ensure a more stable supply of agricultural products to meet the demand of different users and end-consumers adequately. At the same time, the Committee reiterated the productivity-enhancing and efficiency-improving strategies laid out in the Philippine Development Plan 2023-2028 concerning agriculture and agribusiness. These measures aim to secure the country’s food supply, prevent sudden increases in agricultural commodity prices, improve the well-being of farmers and fisherfolk, and ensure the vital contribution of agriculture to other sectors of the economy.
