Inflation in the Philippines soared to 6.4% year-on-year in July, the highest figure in four years, fueled by the unstoppable rise in food and transport prices, the National Statistics Office published this Friday. .
The escalation of food and beverage prices continues to increase, registering a rise of 6.9% year-on-year, while transport experiences an inflation of 18% compared to the same month last year.
Both indicators are the “main reasons” that explain a new rise in monthly prices, according to the statistical institution, which reported in July the sixth consecutive month of an increase in inflation since it stood at 3% in February.
The Philippine Central Bank last month raised interest rates for the third time in two months to contain inflation, taking rates to 3.25% amid strong economic growth (8.1% in the first quarter of year).
“Inflation may remain high for the rest of the year due to pressure on prices due to the war in Ukraine, the economic slowdown in China” and the restrictive “aggressive monetary policy” of the Federal Reserve in the US, the institution stressed in its report.