Philippines Inflation Rate at 9-1/2-Year High of 6.7% in September



The Philippines' annual inflation rate rose to 6.7 percent in September of 2018 from 6.4 percent in the previous month, and compared to market expectations of 6.8 percent. It is the highest reading since February 2009, due to a surge in prices of food and a faster rise cost of transport.

Year-on-year, prices of heavily-weighted food and non-alcoholic beverages increased by 9.7 percent in September, following a 8.5 percent in August and marking the highest food inflation since March 2009. 

In addition, upward prices pressure came from: alcoholic beverages and tobacco (21.8 percent from 21.6 percent in August); clothing and footwear (2.5 from 2.4 percent); housing, water, electricity, gas and other fuels (4.6 percent from 5.5 percent); furnishing, household equipment and routine maintenance (3.6 percent from 3.5 percent); health (4.1 percent from 4 percent); transport (8 percent from 7.8 percent); communication (0.5 percent from 0.5 percent); recreation and culture (3 percent from 2.4 percent); and restaurant & miscellaneous goods and services (4 percent from 4 percent). On the other hand, cost continued to fall for education (-3.8 percent vs -3.8 percent).

On a monthly basis, consumer prices went up 0.8 percent, after a 0.9 percent rise in August. Prices increased for: food and non-alcoholic beverages (1.8 percent); alcoholic beverages & tobacco (0.4 percent); clothing and footwear (0.3 percent); housing, water, electricity, gas and other fuels (0.4 percent); furnishing, household equipment and routine maintenance of the house (0.3 percent); health (0.2 percent); transport (0.9 percent); and restaurants and miscellaneous goods and services (0.4 percent), and education (0.1 percent). Meanwhile, inflation was flat for: communication; recreation and culture; and education.

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.

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

Philippines Inflation Rate at  9-1/2-Year High of 6.7% in September


PSA l Rida | rida@tradingeconomics.com
10/5/2018 2:47:57 AM