Inflation slowed down in June as it went down to 6.4 percent in June from 6.8 percent in May as fuel and food prices declined, the Philippine Statistics Authority (PSA) said Tuesday.

The June data was within the Bangko Sentral ng Pilipinas (BSP) forecast range of 6 to 7 percent and the central bank said ''its latest projections indicate that inflation will likely remain elevated in the near term.''

From January to June, inflation averaged at 4.6 percent, above the central bank's full-year goal of three percent and the tolerance range of plus-minus one percentage point around the target, the BSP said.

The BSP said it ''is prepared to take further monetary action as needed to ensure that inflation returns close to the 3 percent target.''

The slowdown was largely driven by lower transport inflation, which decelerated to 12.8 percent in June from 16.2 percent in May amid easing tensions in the Middle East. The rise in food and non-alcoholic beverage prices also slowed to 5.2 percent from 5.7 percent in May.

“Every percentage point drop in inflation matters to Filipino families,” said Economy, Planning and Development Secretary Arsenio Balisacan. “It means household budgets can go further, especially for poor families who spend a large share of their income on food and transportation.”

Balisacan said that the easing inflation pressures reflect both improving global conditions and the impact of coordinated government measures, such as targeted assistance for farmers, fisherfolk, and transport service providers, as well as lifting of toll fees for vehicles transporting agricultural produce.

“If we want stable prices, we need a stable food supply,” the government’s chief economist said. “Reducing losses from weather disturbances and other supply disruptions remains one of the most effective ways to protect both consumers and producers from future price shocks.”

The government is implementing the El Niño Food Security Action Plan, with a total of P26.13 billion allocated to strengthening the country’s preparedness to weather disturbances, ensuring adequate food supply, minimizing income losses among affected farmers and fisherfolk, and expanding consumer access to affordable food. PHS