Finance Secretary Benjamin Diokno said over the weekend that recent indicators point to a sustained recovery and growth of the economy going forward.
Diokno cited the improving labor market, easing inflation, manageable debt levels, and structural reforms that will entice the inflow of more foreign direct investments .
“The consistent decline in inflation suggests that our strategies are gaining ground and that we’re on track to bringing inflation back within the target range of 2 to 4 percent in the fourth quarter of this year and below the lower limit of the target in the first quarter of 2024,” Diokno said in a statement.
Headline inflation declined for the fifth consecutive month to a 13-month low of 5.4 percent in June from 6.1 percent in May.
Inflation peaked at 8.7 percent in January 2023 but eased in the next five months.
The main sources of the slowdown are the lower contribution of food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels to overall inflation.
Food inflation continued to moderate, but is still the biggest contributor to overall inflation at 2.3 percentage points.
Diokno said through the recently organized Inter-Agency Committee on Inflation and Market Outlook, the analyses of the demand and supply of key commodities are being harmonized.