Philippines

WFP Philippines - Price Monitoring Bulletin, July 2022

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Key highlights

• Headline inflation1 in July 2022 further increased to 6.4% from 6.1% in June. The spike is caused by the higher annual growth in the food and non-alcoholic beverages (PSA, July 2022).

• Prices of fuel continue to register net increases based on year-to-date data from the Department of Energy. As of July 26, 2022, a liter of gasoline has increased by 7%, a liter of diesel by 57%, and a liter of kerosene by 59% since the start of the year.

• Fertilizer prices maintained their surge according to the Department of Agriculture, although the average monthly rate of increase in July is slightly lower than in May and June.

• In the National Capital Region (NCR), the average retail prices of rice, meat, and some fruits (i.e., mango, banana and papaya) and vegetables (i.e., ampalaya and onion) grew from May to June 2022.

• The forecast for possible increase in the price of rice remains due to continued upsurge in the prices of fertilizers and transport costs. • The second quarter national Social Weather Survey found 48% of Filipinos considered themselves Poor, a 5-point rise in the nationwide Self-Rated Poor Families between April 2022 and June 2022.

• Based on WFP’s market monitoring in Typhoon Odette affected provinces, mixed retail price trends were observed across the four provinces of Bohol, Dinagat Islands, Southern Leyte, and Surigao del Norte.

• Market characteristics: More than half (55%) of traders interviewed for the market assessment reported that the average prices of key commodities sold in July 2022 remained the same, while 39% said prices further increased. To cope with the surge in prices, nearly 60 percent of traders noted that the customers started buying fewer goods compared to usual and buying cheaper or less preferred goods.

• This shift in food consumption observed since June 2022 remains a concern as it may lead to the deterioration of already poor nutritional indicators, especially among children and women.