Philippines Inflation Slows to 6.2% in July on Easing Transport, Education Costs

MANILA, Philippines — Inflation eased to 6.2 percent in July from 6.4 percent in June, primarily due to a slower increase in transport costs and education services, the Philippine Statistics Authority (PSA) announced Wednesday. The transport sector saw its inflation rate decelerate to 11.9 percent in July from 12.8 percent in June. This slowdown was largely driven by a moderation in gasoline price inflation, which eased to 34.1 percent from 39.2 percent in the previous month. Education services also contributed to the downtrend. Inflation for tertiary education slowed to 1.8 percent from 3.8 percent, while primary education eased to 1.8 percent from 4.6 percent, and secondary education to 1.6 percent from 3.6 percent. The July print was lower than the 6.4-percent median estimate of 14 economists surveyed by the Inquirer and fell within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 5.6 to 6.6 percent. Inflation has now eased for three consecutive months after peaking in April. However, the average inflation for the first seven months of the year stood at 5.0 percent, which is still well above the BSP’s 3-percent target. This development highlights the ongoing challenge of price stability in the Philippine economy. While the moderation in transport costs offers some relief, other price drivers, such as food items, will continue to be closely monitored.