Philippines Inflation Rate at 4-Month Low


Consumer prices in Philippines unexpectedly rose 0.9 percent in February of 2016, slowing from 1.3 percent in January and well below market consensus of a 1.4 percent rise. It is the lowest figure since November 2015, as cost of housing and utilities declined at a faster pace while food inflation eased.

Year-on-year, prices increased for : alcoholic beverages and tobacco (+4.9 percent in February from +4.7 percent in January), health (+1.9 percent from +1.8 percent), communication (+0.1 percent from +0.0 percent) and restaurant and miscellaneous goods and services (+1.5 percent from +1.4 percent). In contrast, cost declined at a faster pace for housing, water, electricity, gas and other fuels (-1.2 percent from -0.5 percent). Cost also fell for transport (-0.5 percent from +1.5 percent). Prices of heavily-weighted food and non-alcoholic beverages slowed to 1.5 percent from 1.7 percent in the previous month. While prices also eased for clothing and footwear (+1.8 percent from +2.1 percent), cost remained steady for: furnishing, households equipment and routine maintenance (+1.5 percent), education (+3.6 percent) and recreation and culture (+1.0 percent).

Core consumer prices rose 1.5 percent from a year earlier, down from 1.8 percent in the preceding month.  It is the lowest figure in five months.

For 2016, the country's central bank targeted inflation between 2.0 percent to 4.0 percent.

On a monthly basis, consumer prices fell 0.3 percent, following a 0.2 percent rise in January. It is the first decline since September 2015. Prices dropped for: food and non-alcoholic beverages (-0.6 percent) and transport (-0.9 percent). In contrast, cost rose for: alcoholic beverages and tobacco (+0.6 percent); clothing and footwear (+0.1 percent); housing, water, electricity, gas and other fuels (+0.2 percent); furnishing, households equipment and routine maintenance (+0.2 percent), health (+0.3 percent), recreation and culture (+0.2 percent) and  restaurant & miscellaneous goods and services (+0.2 percent). Cost remained unchanged for communication and education.

Philippines Inflation Rate at 4-Month Low


PSA l Rida Husna | rida@tradingeconomics.com
3/4/2016 3:20:08 AM