Philippines Inflation Rate Edges Up To 2.8% In July


Consumer prices in the Philippines were recorded at 2.8 percent year-on-year in July of 2017 compared to a downwardly revised 2.7 percent in the previous month and consistent with market expectations. It edged up from a 5-month low as prices for most commodity groups grew at a steady rate.

In July, price increased more than in a month earlier for: housing, water, electricity, gas and other fuels (2.2 percent from 2.1 percent); education (2.3 percent from 2.2 percent); transport (3.8 percent from 2.4 percent) and restaurants & miscellaneous goods & services (2.1 percent from 1.7 percent). Costs went up at a slower pace for: food & non-alcoholic beverages (3.3 percent from 3.5 percent); and furnishing, household equipment & routine maintenance of the house (2 percent from 2.1 percent). Inflation was steady for: alcoholic beverages & tobacco (6.2 percent); clothing & footwear (2.1 percent); health (2.4 percent); communication (0.2 percent); and recreation & culture (1.2 percent).
 
Core consumer prices slowed to an 11-month low of 2.1 percent, compared to a 2.6 percent increase in June.
 
On a monthly basis, consumer prices edged up 0.3 percent, compared to a downwardly revised flat reading in a month earlier. Prices increased at a faster rate for: clothing and footwear (0.2 percent from 0.1 percent in June); housing, water, electricity, gas & other fuels (0.3 percent from -1.2 percent); health (0.3 percent from 0.2 percent); transport (1.1 percent from -0.2 percent); and restaurant & miscelleneous goods & services (0.6 percent from 0.4 percent). In contrast, costs fell for food & non-alcoholic beverages (-0.1 percent from 0.4 percent), while costs were steady for: furnishing, household equipment & routine maintenance of the house (0.1 percent) and communication (0 percent).

The Central Bank of Philippines, Bangko Sentral ng Pilipinas, targets an inflation rate of 2 to 4 percent.
 

PSA l Charles | charles@tradingeconomics.com
8/4/2017 2:36:17 AM