Philippines Inflation Rate Eases to 1.3% YoY in January


Philippines annual inflation rate slowed to 1.3 percent in January of 2016 from 1.5 percent in December, in line with market consensus. Cost of housing and utilities declined at a faster pace while food inflation was steady.

Year-on-year, prices accelerated for alcoholic beverages and tobacco (+4.7 percent in January from +4.4 percent in December). In contrast, cost declined at a faster pace for housing, water, electricity, gas and other fuels (-0.5 percent from -0.3 percent). Prices of heavily-weighted food and non-alcoholic beverages rose 1.7 percent, the same pace as in the previous two months. Prices were also steady for: education (+3.6 percent), restaurant and miscellaneous goods and services (+1.4 percent), communication while prices moderated for: clothing & footwear (+2.1 percent from +2.3 percent); furnishing, households equipment and routine maintenance (1.5 percent from +1.6 percent), health (+1.8 percent from +1.9 percent); transport (+1.5 percent from +2.2 percent) and recreation & culture (+1.0 percent from +1.1 percent). 

Core consumer prices rose 1.8 percent from a year earlier in January 2015, slowing a 2.1 percent increase in the preceding month. 

On a monthly basis, consumer prices increased by 0.2 percent, the same pace as in December 2015. Prices rose for: food and non-alcoholic beverages (+0.7 percent), alcoholic beverages and tobacco (+1.0 percent); clothing and footwear (+0.2 percent); health (+0.4 percent) and restaurant & miscellaneous goods and services (+0.1 percent). In contrast, prices declined for housing, water, electricity, gas and other fuels (-0.2 percent) and transport (-0.9 percent). Cost remained unchanged for: communication, recreation & culture and education.

For 2016, the country's central bank expects inflation to be between 2.0 percent to 4.0 percent.

Philippines Inflation Rate Eases to 1.3% YoY in January


PSA | Rida Husna | rida@tradingeconomics.com
2/5/2016 10:06:51 AM