INFLATION slowed to 2.8 percent in June, a five-month low, from 3.1 percent in May, although the increase was much faster than the 1.9 percent rate recorded in the same period in 2016, data released by the Philippine Statistics Authority Wednesday showed.
Lower yearly gains were recorded in the indices of the following commodity groups: Food and non-alcoholic beverages (3.5 percent); clothing and footwear (2.1 percent); housing, water, electricity, as and other fuels (2.1 percent); furnishing, household equipment and routine maintenance of the house (2.1 percent); health (2.4 percent); transport (2.3 percent); and recreation and culture (1.1 percent).
“Meanwhile, higher annual growths were observed in alcoholic beverages and tobacco index at 6.2 percent; health index, 2.3 percent; education index, 2.1 percent; and restaurant and miscellaneous goods and services index, 1.7 percent,” the statistical agency said in an accompanying statement.
Core inflation was also slower in June.
“Similarly, excluding selected food and energy items, core inflation continued to move at a slower pace of 2.6 percent in June 2017. It was recorded at 2.9 percent in May 2017 and 1.9 percent during the same month in the previous year,” it added.
For the first half of 2017, headline inflation settled at 3.1 percent and core inflation at 2.8 percent.
The Bangko Sentral ng Pilipinas (BSP) gave a forecast ranging from 2.4 percent to 3.2 percent for July.
Analysts polled by The Manila Times had expected inflation in June to stand between 2.8 percent and 3.2 percent.