Philippines Inflation Rate Slows to 7-Month Low of 5.1%


The Philippines' annual inflation rate fell to a 7-month low of 5.1 percent in December of 2018 from 6.0 percent in the previous month. The latest figure was well below market consensus of 5.6 percent, mainly driven by a marked slowdown in cost of food and transport.

Year-on-year, prices of food and non-alcoholic beverages increased by 6.7 percent, much slower than a 8 percent rise in November and marking the lowest food inflation since June. In addition, cost rose less for: alcoholic beverages and tobacco (21.7 percent vs 21.8 percent in November); housing, water, electricity, gas and other fuels (4.1 percent vs 4.2 percent); furnishing, household equipment and routine maintenance (3.8 percent vs 4.0 percent); transport (4.0 percent vs 8.9 percent); and restaurants and miscellaneous goods and services (4.3 percent vs 4.5 percent). At the same time, cost of education continued to fall (-3.8 percent, the same as in November). On the other hand, inflation was steady for: communication (at 0.4 percent); and recreation and culture (at 3.2 percent), while prices increased faster for: clothing and footwear (2.8 percent vs 2.7 percent); and health (4.8 percent vs 4.5 percent).

On a monthly basis, consumer prices dropped 0.4 percent, after a 0.2 percent fall in November. Cost decreased for food and non-alcoholic beverages (-0.4 percent); and housing and utilites (-0.1 percent). In contrast, prices went up for: clothing and footwear (0.2 percent); furnishing, household equipment and routine maintenance (0.2 percent); health (0.3 percent); recreation and culture (0.2 percent); education (0.1 percent); and restaurant and miscellaneous goods and services (0.1 percent). 

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

Philippines Inflation Rate Slows to 7-Month Low of 5.1%


PSA l Rida Husna | rida@tradingeconomics.com
1/4/2019 1:53:41 AM