Headline inflation further quickened to 6.1 percent in June, the highest in almost four years, from 5.4 percent in May.
This was the highest since the 6.9 percent booked in October 2018.
The inflation outturn last month was within the BSP’s forecast range of 5.7 to 6.5 percent .
The resulting year-to-date average inflation of 4.4 percent in the first half of 2022 is above the government’s average inflation target range of two to four percent for 2022.
On a month-on-month seasonally adjusted basis, inflation also increased to one percent in June from 0.5 percent in May.
The Bangko Sentral ng Pilipinas (BSP) said majority of commodity groups registered either higher or unchanged inflation rates in June with food and energy-related items continuing to be the key drivers. Inflation rates for most food items increased (particularly for rice, meat, fruits, and sugar) while year-on-year vegetable inflation eased slightly but remained at double-digits. Transport inflation also continued to rise due to higher fuel prices and jeepney fare hike in select regions.
According to the central bank, the latest inflation reading remains consistent with the BSP’s assessment of a continued uptick in inflation in the near term due to persisting supply-side pressures.
“Looking ahead, the BSP will continue to be vigilant against the risks to inflation expectations and further second-round effects, and remains ready to undertake the necessary follow-through monetary policy action to safeguard its price stability objective,” the central bank said.
At the same time, the BSP reiterated its support for the carefully coordinated efforts of other government agencies in implementing non-monetary intervention measures to mitigate the prolonged impact of supply-side factors on inflation.