Philippines Inflation Rate at 7-Month High


Philippines annual inflation rate rose 1.5 percent in December of 2015 from 1.1 percent in November and slightly above market consensus. It is the highest figure since May, as cost of housing and utilities declined less than in previous month while prices of food & non-alcoholic beverages were steady.

Year-on-year, prices increased for: alcoholic beverages and tobacco (+4.4 percent in December from +3.9 percent in November); health (+1.9 percent from +1.8 percent); transport (+2.2 percent from +0.6 percent) and recreation & culture (+1.1 percent from +1.0 percent). Prices of heavily-weighted food and non-alcoholic beverages rose 1.7 percent, the same pace as in the previous month. Cost also steady for: clothing & footwear (+2.3 percent); furnishing, household equipment and routine maintenance (+1.6 percent); education (+3.6 percent) and restaurant, miscellaneous goods & services (+1.4 percent). In contrast, cost declined for housing, water, electricity, gas & other fuels (-0.3 percent from -1.2 percent).

Core inflation rose 2.1 percent from a year earlier, following a 1.8 percent increase in the preceding month. It is also the highest figure in 7 months

For full year of 2015, consumer prices rose 1.4 percent, below the central bank target for the year at  2.0 percent to 4.0 percent. A year earlier, consumer prices increased by 4.1 percent.

On a monthly basis, consumer prices increased by 0.2 percent, slowing from a 0.5 percent rise in November and in line with market expectations. Prices rose for; alcoholic beverages and tobacco (+0.8 percent); clothing and footwear (+0.2 percent); housing, water, electricity, gas and other fuels (+0.2 percent); transport (+0.9 percent); recreation & culture (+0.1 percent) and restaurant & miscellaneous goods and services (+0.2 percent). In contrast, prices declined for food and non-alcoholic beverages (-0.1 percent). While cost was steady for  furnishing, household equipment and routine maintenance (+0.2 percent), prices remained unchanged for communication and education. 

Philippines Inflation Rate at 7-Month High


PSA l Rida Husna | rida@tradingeconomics.com
1/5/2016 7:46:08 AM