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Inflation picks up in June

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The overall year-on-year increase in prices of widely used goods accelerated in June following four straight months of slowing down, the Philippine Statistics Authority (PSA) reported this morning.

Preliminary data from the PSA showed headline inflation at 2.5% last month, picking up from the 2.1% pace in May, albeit still slower than the 2.7% inflation rate in June 2019.

The latest headline figure is higher than the 2.2% median in a BusinessWorld poll conducted late last week and falls within the 1.9%-2.7% estimate given by the Bangko Sentral ng Pilipinas (BSP) for June.

Year to date, inflation settled at 2.5%, still within the BSP’s 2%-4% target band and above the 2.3% forecast for the entire 2020.

Core inflation, which discounted volatile prices of food and fuel, stood at three percent in June, accelerating from 2.9% the previous month, but still slower than the 3.3% logged last year. So far, it averaged three percent for the year.

Likewise, the PSA reported preliminary figures for inflation as experienced by low-income households for June. That month, inflation for the bottom 30% of income households grew three percent, faster than the 2.9% in May, but slower than the 3.1% in June 2019.

For the year, the bottom 30% inflation averaged 2.5%.

The consumer price index for the bottom 30% modifies the model basket of goods to reflect the spending patterns of the poor. This compared to the headline CPI which measures inflation as experienced by the average household. — Jobo E. Hernandez





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