Philippines Inflation Rate Jumps to 44%
Headline Inflation Rises
The Philippines' headline inflation rate, which measures the overall change in prices of goods and services, has increased to 44% in July 2024 from 37% in June 2024, according to the Philippine Statistics Authority (PSA).
Seasonally Adjusted CPI Remains Flat
The country's seasonally adjusted Consumer Price Index (CPI) for all items remained unchanged with a zero percent monthly rate in June 2024, compared to a 0.3% increase in the previous month.
Long-Term Trend
The current inflation rate marks a continuation of a months-long trend of rising prices in the Philippines. In November 2023, the headline inflation rate was at 41%, up from 49% in October 2023.
Reasons for Inflation
The PSA attributed the increase in inflation primarily to higher electricity, gas, and water rates, as well as an increase in the prices of food and non-alcoholic beverages.
Economic Impact
The elevated inflation rate is likely to have a significant impact on the Philippine economy, potentially reducing consumer spending and business investment.
References
- Philippine Statistics Authority: Consumer Price Index - July 2024
- Bangko Sentral ng Pilipinas: Key Statistics
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