BUSINESS
Advocates Philippines
Inflation Declines Further For July 2023
Photo credit: PCO
The Philippines' bottom 30% income households witnessed a significant decrease in overall inflation, further decelerating to 5.2 percent in July 2023 from 6.1 percent in the previous month. This marks the lowest inflation rate observed since April 2022 when it stood at 5.0 percent. The national average inflation rate for this group of consumers from January to July 2023 reached 7.6 percent, lower than the 7.2 percent recorded in July 2022.
The primary driving force behind the continued decline in overall inflation in July 2023 was the lower year-on-year increase in heavily-weighted food and non-alcoholic beverages, which posted a rate of 6.1 percent compared to 6.9 percent in the previous month. Following closely behind was housing, water, electricity, gas, and other fuels, which saw an annual mark-up of 3.0 percent during the month, down from 4.8 percent in June 2023. Transport also contributed to the slowdown with an annual decline of -3.0 percent compared to -1.2 percent in the previous month.
Several commodity groups also registered slower annual upticks in July 2023, including alcoholic beverages and tobacco, clothing and footwear, furnishings, household equipment, routine household maintenance, health, restaurants and accommodation services, and personal care and miscellaneous goods and services.
On the other hand, the indices of recreation, sport and culture, as well as education services, saw faster annual increases during the month.
Food inflation for the bottom 30% income households also experienced a downward trend, decelerating to 6.1 percent in July 2023 from 7.0 percent in June 2023, marking the fifth consecutive month of lower inflation for this income group. In July 2022, food inflation was recorded at 7.1 percent.
The decline in food inflation was influenced by the lower year-on-year growth in fish and other seafood, meat, and sugar, confectionery, and desserts. Additionally, several other food groups saw lower annual increments during the month.
Food inflation contributed 60.2 percent share or 3.1 percentage points to the July 2023 overall inflation for this particular income group. Cereals and cereal products, vegetables, tubers, plantains, cooking bananas, and pulses, as well as fish and other seafood were the main contributors to the food inflation during the month.
In the National Capital Region (NCR), the overall inflation for the bottom 30% income households retained its previous month's annual growth rate of 6.6 percent in July 2023, compared to 5.3 percent in the same month the previous year. The NCR experienced faster annual increments in the indices of food and non-alcoholic beverages, furnishings, household equipment, routine household maintenance, recreation, sport and culture, restaurants, and accommodation services, and personal care and miscellaneous goods and services. On the other hand, slower annual mark-ups were observed in alcoholic beverages and tobacco, clothing and footwear, housing, water, electricity, gas, and other fuels, as well as transport.
Following the national trend, inflation for the bottom 30% income households in areas outside NCR also slowed down to 5.1 percent in July 2023 from its previous month's annual rate of 6.0 percent. In July 2022, inflation for this group was registered at 7.2 percent.
Regions outside NCR saw all-time low inflation rates for the bottom 30% income households relative to their respective inflation rates in the previous month. The lowest inflation rate was observed in Region IX (Zamboanga Peninsula) at 3.2 percent, while MIMAROPA Region and Region VI (Western Visayas) recorded the highest inflation rates at 6.9 percent.
The primary driving force behind the continued decline in overall inflation in July 2023 was the lower year-on-year increase in heavily-weighted food and non-alcoholic beverages, which posted a rate of 6.1 percent compared to 6.9 percent in the previous month. Following closely behind was housing, water, electricity, gas, and other fuels, which saw an annual mark-up of 3.0 percent during the month, down from 4.8 percent in June 2023. Transport also contributed to the slowdown with an annual decline of -3.0 percent compared to -1.2 percent in the previous month.
Several commodity groups also registered slower annual upticks in July 2023, including alcoholic beverages and tobacco, clothing and footwear, furnishings, household equipment, routine household maintenance, health, restaurants and accommodation services, and personal care and miscellaneous goods and services.
On the other hand, the indices of recreation, sport and culture, as well as education services, saw faster annual increases during the month.
Food inflation for the bottom 30% income households also experienced a downward trend, decelerating to 6.1 percent in July 2023 from 7.0 percent in June 2023, marking the fifth consecutive month of lower inflation for this income group. In July 2022, food inflation was recorded at 7.1 percent.
The decline in food inflation was influenced by the lower year-on-year growth in fish and other seafood, meat, and sugar, confectionery, and desserts. Additionally, several other food groups saw lower annual increments during the month.
Food inflation contributed 60.2 percent share or 3.1 percentage points to the July 2023 overall inflation for this particular income group. Cereals and cereal products, vegetables, tubers, plantains, cooking bananas, and pulses, as well as fish and other seafood were the main contributors to the food inflation during the month.
In the National Capital Region (NCR), the overall inflation for the bottom 30% income households retained its previous month's annual growth rate of 6.6 percent in July 2023, compared to 5.3 percent in the same month the previous year. The NCR experienced faster annual increments in the indices of food and non-alcoholic beverages, furnishings, household equipment, routine household maintenance, recreation, sport and culture, restaurants, and accommodation services, and personal care and miscellaneous goods and services. On the other hand, slower annual mark-ups were observed in alcoholic beverages and tobacco, clothing and footwear, housing, water, electricity, gas, and other fuels, as well as transport.
Following the national trend, inflation for the bottom 30% income households in areas outside NCR also slowed down to 5.1 percent in July 2023 from its previous month's annual rate of 6.0 percent. In July 2022, inflation for this group was registered at 7.2 percent.
Regions outside NCR saw all-time low inflation rates for the bottom 30% income households relative to their respective inflation rates in the previous month. The lowest inflation rate was observed in Region IX (Zamboanga Peninsula) at 3.2 percent, while MIMAROPA Region and Region VI (Western Visayas) recorded the highest inflation rates at 6.9 percent.
Aug 4, 2023
