Inflation eases to 6.4% in June

MANILA, Philippines – Inflation eased to 6.4 percent in June amid easing tensions in the Middle East, Philippine Statistics Authority (PSA) reported on Tuesday.

The latest reading was slower than the 6.8 percent recorded in May, bringing the year-to-date average to 4.8 percent.

READ: BSP: Inflation likely eased in June to 6-7%

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It also came in lower than the 6.7 percent median estimate of the 12 economists surveyed by the Inquirer and within the Bangko Sentral ng Pilipinas’ forecast range of 6 to 7 percent.

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Despite the slowdown, the June inflation rate and six-month average is still above the Marcos administration’s 2 to 4 percent target range, indicating that inflationary pressures remain elevated.

State statisticians attributed the easing in consumer prices largely to slower increases in transport costs, which posted an inflation rate of 12.8 percent in June, down from 16.2 percent in May.

The deceleration was driven by softer fuel prices as global oil prices continued to decline following the ongoing peace talks between the United States and Iran.

READ: US, Iran agree to pause attacks, meet in Qatar – US media

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Gasoline inflation slowed to 39.2 percent from 51.6 percent in May, while diesel inflation eased to 39.0 percent from 58.5 percent.

Food inflation also moderated to 5.2 percent in June from 5.7 percent the previous month, further contributing to the overall slowdown in headline inflation. /pai INQ

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