Inflation soared to the highest in more than three years in June, fueled by higher food and transport costs, the Philippine Statistics Authority (PSA) reported on Tuesday morning.
Headline inflation in June surged by 6.1% year on year from 5.4% in May and 4.1% a year ago, preliminary data from the agency showed.
This was slightly higher than the 6% median estimate in a BusinessWorld poll conducted last week. It also settled within the 5.7%-6.5% forecast range of the Bangko Sentral ng Pilipinas (BSP) for that month.
June’s print matched the pace recorded in November 2018 and was the fastest growth since the 6.9% print in October 2018.
It was also the third consecutive month that inflation went above the BSP’s 2-4% target range.
Month on month, inflation picked up 0.9%. Adjusting for seasonality factors, month-on-month inflation rose by 1% in June.
Year to date, inflation averaged 4.4%, lower than the 4.1% seen in the same period a year ago. This was also lower than the central bank’s revised 5% inflation forecast.
Heavily weighted food and beverages grew 6% year on year in June from 4.9% in May. Transport likewise picked up 17.1% from 14.6%.
Meanwhile, inflation as experienced by the poor households, under 2012-based prices, increased by 5% in June, higher than the 4.3% both in May and in June last year. — Abigail Marie P. Yraola