Philippines Inflation Rate at Over 9-Year High of 5.7% in July



The Philippines' annual inflation rate rose to 5.7 percent in July of 2018 from 5.2 percent in the previous month, above market estimates of 5.5 percent. It is the highest reading since March 2009, as cost increased at a faster pace for housing and transport while food inflation stayed at nearly 4-year high.

Year-on-year, prices of heavily-weighted food and non-alcoholic beverages increased by 7.1 percent year-on-year, following a 6.1 percent in May. It is the highest food inflation since August 2014. 
In addition, cost rose at a faster rate for: alcoholic beverages and tobacco (21.5 percent from 20.8 percent in June); clothing and footwear (2.4 percent from 2.2 percent); housing, water, electricity, gas and other fuels (5.6 percent from 4.6 percent); furnishing, household equipment and routine maintenance (3.3 percent from 3 percent); health (3.7 percent from 2.7 percent); transport (7.9 percent from 7.1 percent); communication (0.5 percent from 0.4 percent) and restaurant and miscellaneous goods and services (3.7 percent from 3.6 percent). Meantime, inflation slowed for: recreation and culture (0.9 percent from 1.4 percent) and cost declined for education (-3.9 percent from 4 percent).

On a monthly basis, consumer prices went up 0.5 percent, after a 0.6 percent rise in June. Prices increased for: food and non-alcoholic beverages (0.9 percent); alcoholic beverages & tobacco (1.1 percent); clothing and footwear (0.34 percent); housing, water, electricity, gas and other fuels (0.9 percent); furnishing, household equipment and routine maintenance of the house (0.6 percent); health (1.2 percent); transport (0.7 percent); communication (0.1 percent); recreation and culture (0.3 percent); and restaurants and miscellaneous goods and services (0.35 percent). On the other hand, cost slumped for education (-7.3 percent).

In March 2018, Philippine Statistics Authority decided to rebase CPI series to 2012 from 2006 in order to accommodate the economic changes in the country.

For 2018, the central bank set an inflation target range of between 2  to 4 percent.

Philippines Inflation Rate at Over 9-Year High of 5.7% in July


PSA l Rida | rida@tradingeconomics.com
8/7/2018 9:33:26 AM