Inflation rate in the Philippines eased to 6.3 percent in August 2022, after five consecutive months of acceleration. With this month’s inflation, the Philippine’s average inflation from January to August 2022 stood at 4.9 percent. In August 2021, inflation rate was posted at 4.4 percent.
The slowdown in inflation at the national level in August 2022 was primarily due to the lower annual increment recorded in the index for transport at 14.6 percent, from 18.1 percent in the previous month. This was followed by food and non-alcoholic beverages whose index declined by 6.3 percent year-on-year, from 6.9 percent in July 2022. The index for information and communication also exhibited lower annual growth at 0.4 percent, from 0.5 percent in July 2022.
On the other hand, inflation rates were higher for the following commodity groups during the month:
a. Alcoholic beverages and tobacco, 9.3 percent;
b. Clothing and footwear, 2.8 percent;
c. Housing, water, electricity, gas and other fuels, 6.8 percent;
d. Furnishings, household equipment, and routine household maintenance, 3.4 percent;
e. Health, 2.5 percent;
f. Recreation, sport and culture, 2.4 percent;
g. Education services, 3.8 percent;
h. Restaurants and accommodation services, 4.2 percent; and
i. Personal care, and miscellaneous goods and services, 3.3 percent.
Meanwhile, the financial services commodity group retained its previous month’s inflation rate.
Core inflation, which excludes volatile food and energy items that are in the headline inflation, stood at 4.6 percent in August 2022. Previous month’s core inflation was lower at 3.9 percent and in August 2021, it was observed at 2.8 percent.
Inflation rate eases to 6.3 percent in August 2022 – PSA
Inflation for food at the national level slid to 6.5 percent during the month, from 7.1 percent in July 2022. In August 2021, it was lower at 5.9 percent.
The deceleration in food inflation was mainly brought about by vegetables, tubers, plantains, cooking bananas and pulses, which declined annually by -2.7 percent. Moreover, annual hikes slowed down in the indices of corn at 26.1 percent; meat and other parts of slaughtered land animals at 9.6 percent; and fish and other seafood at 7.2 percent.
On the other hand, the following food groups exhibited faster annual growth during the month:
a. Rice, 2.2 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 8.0 percent;
c. Milk, other dairy products and eggs, 6.5 percent;
d. Oils and fats, 19.6 percent;
e. Fruits and nuts, 3.9 percent;
f. Sugar, confectionery and desserts, 26.0 percent; and
g. Ready-made food and other food products N.E.C., 5.8 percent.
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