Philippines Inflation Rate at 3-Month High of 3.1% in August


Consumer prices in the Philippines were recorded at 3.1 percent year-on-year in August of 2017 compared to 2.8 percent in the previous month and above market expectations of 3 percent. It was the highest inflation rate since May this year as prices for most commodity groups grew at a faster pace.

In August, price increased more than in a month earlier for: food & non-alcoholic beverages (3.5 percent from 3.3 percent); alcoholic beverages & tobacco (6.3 percent from 6.2 percent); housing, water electricity, gas & other fuels (2.8 percent from 2.2 percent); transport (4.4 percent from 3.8 percent); communication (0.3 percent from 0.2 percent); recreation & culture (1.4 percent from 1.2 percent); and restaurant & miscellaneous goods & services (2.2 percent from 2.1 percent). In contrast, costs went up at a slower pace for: clothing & footwear (1.9 percent from 2.1 percent); and furnishing, household equipment & routine maintenance of the house (1.8 percent from 2 percent). Inflation was steady for health (2.4 percent) and education (2.3 percent).

Core consumer price inflation grew to a 4-month high of 3 percent from 2.1 percent in July.

On a monthly basis, consumer prices edged up 0.3 percent, the same as in a month earlier and beating estimates of a 0.2 percent gain. Prices increased at a faster rate for: alcoholic beverages & tobacco (0.4 percent from 0.3 percent); housing, water, electricity, gas & other fuels (0.5 percent from 0.3 percent); communication (0.1 percent from a flat reading); and recreation & culture (0.3 percent from 0.2 percent). Meanwhile prices rebounded for food & non-alcoholic beverages (0.4 percent from -0.1 percent). Prices moderated for: clothing & footwear (0.1 percent from 0.2 percent); health (0.1 percent from 0.3 percent); transport (0.3 percent from 1.1 percent); and restaurant & miscellaneous goods & services (0.2 percent from 0.6 percent).

August's inflation rate remains well within the Central Bank of Philippines', Bangko Sentral ng Pilipinas, target of 2 to 4 percent.

PSA | Charles | charles@tradingeconomics.com
9/5/2017 3:06:57 AM