Philippines May Inflation Rate Edges Up to 3.2%


The Philippines' annual inflation rate rose to 3.2 percent in May of 2019 from a 16 month-low of 3.0 percent in the previous month and above market expectations of 2.9 percent. It was the first time that inflation accelerated since last September, as both cost of food and housing & utilities increased faster.

The central bank set an inflation target range of between 2 to 4 percent from 2018 to 2020.

Year-on-year, prices of food and non-alcoholic beverages increased by 3.4 percent in May, accelerating from a 3.0 percent rise in April. This was mainly attributable to higher annual rises in cost of other cereals, flours, cereal preparation, bread, pasta and other bakery products (3.7 percent); fish (4.2 percent); fruits (4.6 percent); vegetables (12.5 percent); and unclassified food products (6.8 percent). Likewise, cost of housing, water, electricity, gas and other fuels advanced faster (3.3 percent vs 3.2 percent), while inflation was steady for: clothing and footwear (at 2.4 percent); health (at 3.6 percent); furnishing, household equipment and routine maintenance (at 3.2 percent); communication (at 0.4 percent); and recreation and culture (at 3.1 percent). 

On the other hand, prices slowed for alcoholic beverages and tobacco (9.5 percent vs 9.9 percent); transport (3.5 percent vs 3.8 percent); and restaurants & miscellaneous goods and services (3.3 percent vs 3.5 percent). At the same time, cost of education continued to decline (-3.8 percent, the same as in April). 

On a monthly basis, consumer prices rose by 0.3 percent in May, after a 0.2 percent gain in the previous month and marking the fifth straight month of rise. Prices went up for: food and non-alcoholic beverages (0.4 percent); alcoholic beverages and tobacco (0.8 percent); clothing and footwear (0.2 percent); housing, water, electricity, gas and other fuels (0.3 percent); furnishing, household equipment and routine maintenance (0.3 percent);  transport (0.7 percent); recreation and culture (0.3 percent); and restaurants & miscellaneous goods and services (0.2 percent). Meantime, cost of health was flat, while that of education fell further (-0.4 percent vs -0.3 percent).

Philippines May Inflation Rate Edges Up to 3.2%


PSA l Rida Husna | rida@tradingeconomics.com
6/5/2019 11:38:09 AM