DoF expects July inflation to ease to 2.7%

to 2.7 percent in July from 2.8 percent in June owing to stable food prices and lower electricity rates, the Department of Finance (DoF) said on Monday.

The estimate compares with 1.9 - tion target of between 2 percent and 4 percent for full-year 2017.

Analysts gave a forecast range of 2.7 percent to 3 percent for July on higher costs of fuel and electricity, and a weaker peso offset lower food prices.

to be release by the Philippine Statistics Authority on August 4, Friday.

In his report to Finance Secretary Carlos Dominguez 3rd, Finance Undersecretary Gil Beltran said the increase in consumer prices likely moderated as index heavyweights food and non-alcoholic beverages remained steady last month.

Prices of food and non-alcoholic beverages clocked in at 3.5 percent last month, unchanged from June, but higher compared with 2.7 percent in July 2016.

Beltran, who is also the Finance department’s chief economist, explained that power costs also dropped last month.

is likely to moderate to 2.7 percent on the back of stable food prices. Year-on-year, power rates also declined,” Beltran said.

will enable the economy to sustain rapid growth and hurdle volatilities in the world economy with relative ease,” he added.

In July, the alcoholic beverages and tobacco indices may have risen by 6.7 percent from 6.2 percent in June, health to 2.5 percent from 2.3