Inflation likely declined further in June, says BSP

By Julito G. Rada

THE Bangko Sentral ng Pilipinas said Friday inflation in June likely eased to as low as 5.3 percent from 6.1 percent in May on lower prices of meat, fruits and liquefied petroleum gas.

Its month-ahead forecast showed that inflation settled within a range of 5.3 percent to 6.1 percent, representing a sustained decline from a peak of 8.7 percent in January.

“The lower prices of meat and fruits as well as the rollback in LPG prices could contribute to downward price pressures during the month,” the BSP said.

The BSP said, however, the higher prices of several food items such as rice, vegetables and fish, increased domestic oil prices and electricity rates and the depreciation of the peso against other currencies were the primary sources of upward price pressures in June.

Distributors announced early in June a reduction of at least P6 per kilogram of LPG which translated into P67.10 to P68.20 decrease for a regular 11-kg household LPG tank.

The successive decline in inflation in the past four months since January compelled the Bangko Sentral ng Pilipinas to keep the overnight borrowing rate steady at 6.25 percent in its last Monetary Board meeting.

Inflation softened to 8.6 percent in February, 7.6 percent in March, 6.6 percent in April and 6.1 percent in May and averaged 7.5 percent in the first five months. This was above the government’s target range of 2 percent to 4 percent.

Outgoing BSP Governor Felipe Medalla earlier said the latest baseline projections continued to suggest a gradual return of inflation to the target band over the policy horizon.

The Philippine Statistics Authority will announce the official June inflation next week.

Meanwhile, the PSA said the Producer Price Index for manufacturing in May also eased from the previous months. PPI measures the average change over time in selling prices received by domestic producers of goods and services.

It said the PPI posted a slower growth of 2 percent in May compared to 2.3 percent in April and 7.2 percent in the same period last year.

“The slower annual growth rate of PPI in May 2023 from April 2023 was brought about by the slowdown in the annual increase in manufacture of food products industry division at 3.7 percent in May 2023 from 4.7 percent annual increment in April 2023,” the PSA said in a statement posted on its website.

The manufacture of food products contributed 36.7 percent to the slower annual growth rate of the PPI for manufacturing in May. The manufacture of food products industry division has the highest weight in the computation of PPI out of the 22 industry divisions in manufacturing.

beyond merely providing livelihood opportunities. The essence of its pledge lies in transforming the lives of its partners, by ensuring profitable incomes that redefine futures and transcend boundaries. This distinction is crucial. With a profitable income, a Grab driver can significantly elevate their standard of living, allowing them to provide their families with better healthcare, improved nutrition, and greater financial stability. It’s an income that can help save for a first home, break the chains of intergenerational poverty, or even fund their children’s education - dreams that may have once seemed beyond reach.

In essence, Grab Philippines is doing more than providing a service or livelihood opportunity; it is instigating a socioeconomic transformation. Its mission to ensure profitable income for every partner is a commitment to enhancing lives, enabling dreams, and building a resilient, economically empowered society. This is the transformative power of the Grab platform, the essence of its commitment, and the reason they are a valuable ally in the Philippines’ journey to economic recovery and shared prosperity.

Aiding resilience: MSME empowerment

Grab’s everyday services have become part of the everyday Filipino life - in Luzon, Visayas and Mindanao. In many cities, GrabFood has turned into a culinary and economic lifeline - feeding families and supporting businesses ranging from sarisari stores and social sellers to mom-andpop stores and big fastfood chains.

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Eisen Lim, founder of Tapapa, shared that being on the Grab platform enabled his business to successfully hedge uncertainties caused by the pandemic.

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Staying on course

Grab has also set its sights on expanding its services to more areas nationwide and making significant contributions to national progress. “Grab deeply cares about contributing significantly towards our country’s progress, not only by providing many more transformative, life changing economic opportunities across more regions, but also serving the needs of the Filipino people through our platform. The mission is to serve our stakeholders and enable their economic success,” adds Vera Cruz.

As the Philippines enters a new era of digital adaptability and economic recovery, it is clear that stakeholders like Grab play a significant role in shaping the nation’s economic narrative. Their pledge is not just to the government but to everyday Filipinos - a promise to do its part to bring a better tomorrow for all.