Inflation eased to 6.3 percent in August from 6.4 percent in July on slower increases in the prices of fuel, food and non-alcoholic beverages, the Philippine Statistics Authority said Tuesday.
National statistician and civil registrar general Dennis Mapa said the August outturn was faster than 4.4 percent a year ago.
The rate brought the average inflation in the first eight months to 4.9 percent, above the target range of 2 percent to 4 percent for 2022.
Mapa said in an online briefing the transport index had a slower inflation of 14.6 percent in August, compared to the 18.1 percent in July.
“This is due to lower gasoline inflation at 31.2 percent from 45.4 percent last July. Diesel inflation was also lower at 70.9 percent from 91.3 percent in July,” Mapa said.
Food and non-alcoholic beverages posted a slower inflation of 6.3 percent in August compared to 6.9 percent in July.
The August inflation outturn was within the Bangko Sentral ng Pilipinas’ forecast range of 5.9 percent to 6.7 percent for the month and was consistent with assessment of elevated price pressures over the near term on broadening price pressures.
The BSP said the uptick in inflation remained supply-driven, but signs of broadening price pressures were also being noted.
“The BSP’s baseline projections continue to indicate above-target inflation in 2022, with inflation decelerating back to the target in 2023 and 2024 following the recent BSP policy rate hikes,” it said in a statement.
“At the same time, upside risks continue to dominate the inflation outlook in the near term due to the potential impact of higher global non-oil prices, the continued shortage in domestic fish supply, the sharp increase in the price of sugar as well as pending petitions for transport fare increases,” it said.
The BSP said the impact of a weaker-than-expected global economic recovery and the resurgence of local COVID-19 infections were the main downside risks to the outlook.
It said the recent interest rate hikes aimed to bring inflation and inflation expectations back to the target to ensure the balanced and sustainable growth of the economy in the medium term.
The National Economic and Development Authority said the government provided subsidy programs and interventions to transform the country’s farming and food systems to ease the impact of global inflationary pressures and protect the purchasing power of Filipinos.
“It is our top priority to ensure that Filipino households have sufficient and healthy food on their table, especially the poorer sector of the society. We will continue implementing programs that reduce transport and logistics costs to bring inflation down and to protect the purchasing power of our consumers,” NEDA and Economic Planning Secretary Arsenio Balisacan said.
“Most importantly, it is imperative to transform Philippine agriculture into a dynamic and productive sector to speed up our recovery and significantly reduce poverty in the country,” he said.
Balisacan said to boost domestic supply, the government would continue to support the agriculture sector through lower input costs, innovation in farming, extension of financial assistance to farmers and boosting the agricultural value chain.
Finance Secretary Benjamin Diokno also reiterated the continuation of targeted support for sectors affected by elevated prices of fuel and key commodities and affirmed the government’s commitment to boosting local food production.
“Support measures include fuel subsidies for the public transport sector, fuel discounts for farmers and fisherfolk and social pension for indigent senior citizens,” Diokno said.