The Department of Finance (DOF) said food price inflation is expected to peak this month, as imports rise to boost domestic supply.
In its economic bulletin released yesterday, the DOF highlighted the country’s headline inflation in June which it said eased as expected after clocking 4.5 percent for three consecutive months.
Year-on-year, the general price level decelerated to 4.15 percent, largely to non-food items as food price inflation stood steady, it said.
“Bolstering food productivity is necessary for long-term food price stability,” the DOF said.
Food price inflation maintained its pace in June at 4.88 percent, unchanged from May’s 4.87 percent.
Average prices of rice, fruits and vegetables declined by 1.1 percent, 0.64 percent and 2.71 percent, respectively, muting the higher-than-average inflation in the prices of meat (19.24 percent) and fish (8.66 percent).
Meanwhile, the DOF said crude oil prices trend up as global recovery boosts oil demand.
“A quick pass-through of international crude oil prices on domestic prices is desirable since the country is an oil importer,” the DOF said.
Transport and electricity inflation rose as Dubai crude oil price surged to $70.96/barrel in June, the DOF said, up 7.5 percent from $65.98 in May 2021 and 76.8 percent from $40.14/barrel in June 2020 as global demand rises.
“The use of more energy efficient technologies has allowed the country to trim down the impact of oil price adjustments on domestic inflation,” it said.
For the first six months of the year, average inflation is 4.42 percent. – Angela Celis
