Philippine inflation slows to 3.7% in June as utility costs cool

PHILIPPINE annual inflation was at 3.7 per cent in June, easing from the previous month on a slower increase in utility costs, the statistics agency said on Friday.

The rate, which was below the 3.9 per cent forecast in a Reuters poll, brought the average reading in the six months to June to 3.5 per cent, within the central bank’s 2 to 4 per cent target range.

The Philippine central bank said inflation was expected to have settled between the 3.4 to 4.2 per cent range in June.

Core inflation, which excludes volatile food and energy prices, came in at 3.1 per cent in June from a year earlier, unchanged from May.

The central bank has kept its policy rate steady at 6.5 per cent in its past six meetings, and flagged a possible cut of 25 basis points at its next meeting on Aug 15.

Bangko Sentral ng Pilipinas Governor Eli Remolona has said the monetary board expects price pressures to ease further in the second half when rice import duty is slashed to 15 per cent from 35 per cent. The tariff cuts, due to run through 2028, will be implemented this month. REUTERS