The government’s economic team, composed of the Department of Budget and Management, Department of Finance, and National Economic and Development Authority, said stronger government measures, especially in improving agriculture productivity and, in the short term, a strategic trade policy, are needed to address supply constraints that have further pushed consumer prices up.

The Philippine Statistics Authority reported that, while the overall price level picked up, the month-on-month inflation eased to 0.5 percent in July, from 0.6 percent in the previous month. Year-on-year, inflation picked up to 5.7 percent, higher than the previous month’s 5.2 percent.

“The current price pressures emanate mainly from supply-side factors. Addressing supply constraints to curb inflation is the utmost priority of the government,” the economic team said in a statement.

The higher year-on-year inflation reading was brought about by the spike in the prices of food and non-alcoholic beverages.

The deflation in the price index of education (-3.9 percent from 4 percent) and the deceleration of recreation and culture (0.9 percent from 1.4 percent) slightly tempered the increase in headline inflation.