July inflation soars to 6.4%

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GROWTH in consumer prices soared further in July to 6.4 percent from 6.1 percent in June, bringing year to date inflation to 4.7 percent, as supply limitations in the domestic market squeezed food costs, the Philippine Statistics Authority reported.

Headline inflation, which measures the rate of increase in consumer prices, in July settled at the top end of the Bangko Sentral ng Pilipinas’ forecast range of 5.6 percent to 6.4 percent and well above the government’s target band of 2 percent to 4 percent.

The July inflation was also significantly higher than the 3.7 percent registered in the same month last year.

Based on the official data, expensive food continued to be the main driver of the surge in inflation during the month. Other contributors were transport and utilities.