Philippines Inflation Rate at 28-Year Low in May


Philippines annual inflation rate eased to 1.6 percent in May of 2015 from 2.2 percent in April. It is the lowest rate since mid-1987, as cost of housing and utilities declined further and prices of food and non-alcoholic beverages slowed.

Year-on-year, prices fell for housing, water, electricity, gas and other fuels (-1.5 percent in May from -0.5 percent drop in April). 

Prices moderated for: heavily-weighted food and non-alcoholic beverages (+3.2 percent from +3.9 percent); alcoholic beverages and tobacco (+3.7 percent from +3.9 percent); clothing and footwear (+2.6 percent from +2.8 percent) and furnishing, household equipment and routine maintenance (+2.2 percent from +2.3 percent).

While prices increased only for transport (+0.1 percent from -0.2 percent), cost remained stable for: health (+2.3 percent), communication (-0.1 percent), recreation and culture (+1.1 percent), education (+5.1 percent) and restaurant and miscellaneous goods and services (+1.2 percent).

Core inflation was recorded at 2.2 percent year-on-year in May, slowing from a 2.5 percent increase in the preceding month.

On a monthly basis, consumer prices declined by 0.1 percent, following a 0.2 percent increase in April. Prices fell for: food and non-alcoholic beverages (-0.1 percent) and housing, water, electricity, gas and other fuels (-0.4 percent). Cost remained unchanged for: alcoholic beverages and tobacco (+0.2 percent), clothing and footwear (+0.1 percent), communication (+0.0 percent) and education (+0.0 percent). While prices increased for health (+0.1 percent) and transport (+0.3 percent), cost moderated for furnishing, household equipment and routine maintenance (+0.1 percent) and recreation and culture (+0.0 percent).

Philippines Inflation Rate at 28-Year Low in May


National Statistics Office l Rida Husna l rida@tradingeconomics.com
6/5/2015 11:14:44 AM