Inflation in the Philippines plunged further to 0.8 percent in July, hitting a new lowest level in 20 years, the Philippine Statistics Authority (PSA) said Wednesday.

    The July inflation rate was much lower from the 1.2 percent in the previous month and 4.9 percent in July last year.

    Year-to-date, inflation reached 1.9 percent, below the inflation target range of 2.0 to 4.0 percent for this year.

    PSA attributed the drop on inflation to the negative annual rates in the indices of housing, water, electricity, gas and other fuels and transport.

    "The indices of food and non-alcoholic beverages, furnishing, household equipment and routine maintenance of the house, health, and education also slowed down," it added.

    Amid low and stable inflation this year, Socioeconomic Planning Secretary Arsenio Balisacan emphasized the need for the government to be wary of the upside risks to inflation such as the occurrence of typhoons in the second semester which is expected to be intensified by the prolonged El Nino.

    "Continued monitoring of agricultural areas is important to ensure that appropriate policy actions are implemented without delay," he said.