Philippines Inflation Rate at Nearly 28-Year Low in July


Philippines annual inflation rate eased to 0.8 percent in July of 2015 from 1.2 percent in June and matching market consensus. It is the lowest figure since April 1987, as cost declined for transport and housing and utilities while prices of food and non-alcoholic beverages slowed further.

Year-on-year, prices fell for: transport (-0.5 percent in July from +0.2 percent in June) and housing, water, electricity, gas and other fuels (-1.1 percent from -1.3 percent). In contrast, prices increased for: clothing and footwear (+2.6 percent from +2.5 percent) and communication (+0.0 percent from -0.1 percent).

Prices moderated for: heavily-weighted food and non-alcoholic beverages (+1.3 percent from +2.1 percent); furnishing, household equipment and routine maintenance (+1.8 percent from +1.9 percent); health (+1.9 percent from +2.2 percent) and education (+3.5 percent from +3.7 percent).

Cost remained stable for: alcoholic beverages and tobacco (+3.8 percent), recreation and culture (+1.1 percent) and restaurant and miscellaneous goods and services (+1.2 percent).

For 2015, the country's central bank targeted inflation to be at 2.0 percent to 4.0 percent.

Core inflation was recorded at 1.9 percent year-on-year in July, slightly slowing from a 202 percent increase in the preceding month. It is the lowest rate since August 2013.

On a monthly basis, consumer prices rose 0.1 percent, following a 0.1 percent rise in June. Prices increased for: food and non-alcoholic beverages (+0.4 percent); housing, water, electricity, gas and other fuels (+0.0 percent); health (+0.4 percent) and communication (+0.1 percent). In contrast, cost declined for transport (-0.2 percent). While prices moderated for education (+0.1 percent), cost remained unchanged for: alcoholic beverages and tobacco (+0.2 percent); clothing and footwear (+0.2 percent); furnishing, household equipment and routine maintenance (+0.1 percent) and restaurant and miscellaneous goods and services (+0.2 percent).

Philippines Inflation Rate at Nearly 28-Year Low in July


National Statistics Office l Rida Husna l rida@tradingeconomics.com
8/5/2015 2:58:21 AM