Philippines core inflation hits 31-month high as headline CPI eases in June

According to a report by BusinessWorld Online, the Philippines' core inflation rate rose to a 31-month high in June, driven by persistent price pressures in key commodities. The core inflation index, which excludes volatile food and energy items, reached a level not seen since late 2021.

Despite the uptick in core inflation, the headline consumer price index (CPI) eased during the same period, suggesting that overall price growth is moderating. The divergence between core and headline inflation highlights the impact of volatile food and fuel prices on the broader measure.

Economists noted that the central bank may face challenges in balancing inflation control with economic growth, as core inflation remains sticky. The data will influence monetary policy decisions in the coming months, particularly if core pressures persist.