PH inflation rate slows to 3.7% in June
PH inflation rate slows to 3.7% in June
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00:00With the advance announcement of power rates to be slashed in June, and an upbeat public
00:05excited on governments acting on its vow to distribute cheap price at 29 pesos a kilo,
00:11inflation finally cooled or slowed down last month. And as our Claizel Pardilio reports,
00:16with global inflation that has leaned on the uptick over the last few months, one should
00:21not nurse hopes of inflation to go on a downtrend moving forward.
00:25Tune is cutting down on using the air conditioner now that the weather has cooled down. She
00:35wasn't surprised that despite it having been 6,000 pesos in May, her electricity bill now
00:41amounted to 3,000 pesos.
00:43From 3.9 percent recorded in May, the inflation rate in the Philippines dipped to 3.7 percent
01:05in June, according to the latest data from the Philippine Statistics Authority. This
01:11rate is notably lower than the 5.4 percent inflation rate observed in June 2023. The
01:18PSA said Dony's experience of lower electricity charges was one of the biggest contributors
01:24to easing inflation. Earlier, the Energy Regulatory Commission mandated Miralco to implement staggered
01:31collection of payments for electricity generation costs, aiming to help consumers lower their
01:38bills. The rollback in gasoline prices, restaurant costs, and rice prices also contributed to
01:45controlling inflation.
01:47We have a big reduction, almost close to 20 centavos per kilo in the price of wheel milled
01:56rice. The reduction in the tariff, all things being the same, we would expect that there
02:02would be a reduction in the price of rice.
02:05The 1,350 pesos half sack of rice that Nora buys is now priced at 1,310 pesos.
02:22Under the leadership of President Ferdinand R. Marcos Jr., the Department of Agriculture
02:27has expressed optimism that inflation, particularly in essential commodities like rice, will continue
02:34to slide. This positive outlook follows the implementation of several government programs
02:41aimed at stabilizing food prices. Today marks a significant milestone with the launch of
02:47the P-29 program across Metro Manila and Bulacan, offering rice at a reduced price of P29 per
02:55kilogram. This initiative is expected to ease the financial burden on Filipino households
03:02grappling with the high prices of rice. The Rice for All program is also set to roll out
03:07ASAP, providing rice at a price range of P45 to P48 pesos per kilogram.
03:14At the beginning of July, the effect of inflation will decrease because the base effect really
03:21started in July and August, we can feel it. And this P-29, Rice for All, we know that
03:29the effect of rice on the overall inflation basket is 2 to 4 percent, so it will really
03:36have an impact on inflation if it continues.
03:41The National Economic and Development Authority assures the Marcos administration remains
03:47determined to achieve the target inflation rate of 2 to 4 percent. The agency will continue
03:54to monitor the supply and prices of food, following reported increases in the price
03:59of some vegetables due to the onset of the rainy season. The increase in poultry prices
04:05is reportedly caused by the importation ban on poultry products from the United States
04:11and Australia, potentially affecting supply. Meanwhile, the ongoing spread of the African
04:16swine fever is said to be driving the movement in pork prices. The implementation of the
04:22Comprehensive Tariff Program for the period 2024 to 2028 is expected to contribute to
04:29making essential goods more affordable in the face of increasing prices of key products
04:35in the global market. This initiative focuses on reducing or maintaining lower tariffs on
04:41imported commodities like rice, pork, chicken, and other agricultural products. Meanwhile,
04:47House Speaker Martin Romuald has pledged to prioritize efforts to reduce electricity
04:53rates and rice prices by swiftly passing effective legislation. Finance Secretary Ralph Recta
04:59has expressed optimism that the inflation rate will remain within the government's target
05:04range in 2024 after its decline in June, with the persistent implementation of a whole of
05:11government interventions to ensure that purchasing power of every Filipino is protected.
05:17Kalei sa Pardilia, for the new and better Philippines.