July 26, 2002 - The Inflation rate in July is further expected to fall to a 30-month low of 2.6%-2.8% from a 28-month low of 3.0% in June. Comprising 55.1% of the consumer price index, the food, beverages, and tobacco index is expected to slow down to 1.5% this year from 1.8% last year and pull down over-all inflation. With the accessibility of imported rice in the market, the inflation rate for rice cereal, in particular, is seen to fall from 0.8% in July 2001 to 0.6% this year.

Despite the year-on-year decline, the month-on-month inflation rate is projected to rise to 0.3%-0.4% in July from 0.2% in June. Continuous rains, not the early dryspell, brought expensive fruits and vegetables to the consumers' tables this month. On the other hand, consumers found relief from lower electricity prices, stable fuel pump prices, and water tariffs. The hike in Skyway and South Luzon Expressway toll rates have yet to translate to higher bus fares south of Manila.

Average inflation rate in the first seven months, therefore, is also estimated to further go down to 3.4% from 3.5%