Inflation eases further in July to 6.2% as food and power risks remain

Price pressures continued to slow for a third straight month, but officials warned that electricity and food costs remain key risks.

Inflation continued to slow in July, easing to 6.2% from 6.4% in June as slower price increases in transport, education, and restaurant and accommodation services helped bring down overall price pressures.

The latest figure brought average inflation in the first seven months of the year to 5%.

Core inflation, which excludes more volatile price movements to show underlying inflation trends, also eased to 4.2% from 4.4% in June. Meanwhile, headline inflation, which measures the overall change in prices of goods and services, has now declined for three straight months after reaching a peak of 7.2% in April.

Despite the improvement, officials warned that risks remain, particularly from electricity and food prices, which continue to influence overall inflation.

Inflation in Metro Manila slowed to 4.4% from 4.9% in June, while areas outside the capital eased to 6.4% from 6.8%.

READ: