Price increases in basic goods and services eased in June, the slowest pace in six months, as transport costs decelerated with base effects fading from last year’s pandemic-related restrictions despite still elevated global oil prices.
Headline inflation the rate of increase in the consumer price index slid to 4.1 percent in June after being stuck at 4.5 percent the last three months. It is also lower than the market consensus of 4.3 percent.
However, it is much quicker than the 2.5 percent rate recorded in the same period last year.
While the June inflation was well within the 3.9 to 4.7 percent forecast of the Bangko Sentral ng Pilipinas for the month, it breached the two to four percent target for 2021. Year-to-date inflation averaged at 4.4 percent.
Philippine Statistics Authority chief Dennis Mapa said the main source of slowdown in the June inflation was transport, which accounted for 95.4 percent of the overall downturn.