Higher electricity rates and upward adjustments in petroleum products saw essential commodities' prices rise in July, with headline inflation rising to 4.4 percent from 3.7% in June, the Bangko Sentral ng Pilipinas (BSP) said.
However, the BSP noted that July's inflation rate is still within its forecast range of 4.0 – 4.8%.
"The resulting year-to-date average of 3.7% was within the government's inflation target range of 3.0% ± 1.0 percentage point for the year. On a month-on-month seasonally adjusted basis, headline inflation rose to 0.6% in July from zero percent in the previous month," the BSP said.
Meanwhile, core inflation eased to 2.9% last month from the previous month's rate of 3.1% year-on-year.
According to the BSP, the uptick in July was traced mainly to non-food inflation, particularly higher electricity rates and the upward adjustment in domestic prices of petroleum products.
"Likewise, inflation for education services went up, coinciding with the start of the school year. Food inflation also accelerated due to faster price increases of meat and fruits, while rice inflation remained elevated," the BSP added.
The latest inflation outturn is consistent with the BSP's projections that inflation will temporarily rise above target in July but could follow a general downtrend beginning in August.
The Monetary Board will consider the latest inflation outturn and the Q2 2024 national accounts in assessing the inflation outlook and balance of risks during the August 2024 monetary policy meeting.
"Looking ahead, the BSP will ensure that monetary policy settings remain in line with its primary mandate of price stability conducive to sustainable economic growth," the Bank said.
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