Philippines Inflation Rate Slows in March


Philippines annual inflation rate eased to 2.4 percent in March of 2015 from 2.5 percent in February, as cost of housing & utilities and transport declined while prices of food and non-alcoholic beverages slowed. Yet, core inflation accelerated to 2.7 percent, the fastest since November 2014.

Year-on-year, cost of housing, water, electricity, gas and other fuels in March fell by 0.2 percent, following a 1.1 percent drop in February. Cost also declined for transport (-0.2 percent from -0.5 percent) and communication (-0.1 percent from  0.1 percent fall).

Prices moderated for: heavily-weighted food and non-alcoholic beverages (+4.3 percent in March from 4.8 percent in the previous month); clothing and footwear (+3.0 percent from +3.1 percent); furnishing, household equipment and routine maintenance (+2.1 percent from +2.2 percent); health (+2.5 percent from +2.7 percent); recreation and culture (+1.1 percent from +1.2 percent). Meanwhile, cost retained their last month's rate for: alcoholic beverages and tobacco (+3.9 percent), education (+5.1 percent), restaurant and miscellaneous goods and services (+1.5 percent)

Core inflation accelerated to 2.7 percent year-on-year in March, as compared to a 2.5 percent increase in February. It is the fastest figure since November 2014 of 2.73 percent.

Year-to-date inflation (from January to March 2015) was recorded at 2.4 percent. The country's central bank has set inflation target between 2.0 to 4.0 percent for 2015.

On a monthly basis, consumer prices dropped 0.1 percent, following a 0.1 percent increase in February. While prices declined only for food and non-alcoholic beverages (-0.4 percent from 0.4 percent drop in the previous month), cost slowed for: alcoholic beverages and tobacco (+0.3 percent); clothing and footwear (+0.1 percent); housing, water, electricity, gas and other fuels (+0.2 percent); furnishing, household equipment and routine maintenance (+0.1 percent); transport (+0.3 percent) and recreation and culture (+0.0 percent). Prices remained unchanged for health (+0.1 percent), education (+0.0 percent) and restaurant and miscellaneous goods and services (+0.1 percent). Cost of communication increased by 0.0 percent, following 0.1 percent drop in February.

Philippines Inflation Rate Slows in March


National Statistics Office l Rida Husna l rida@tradingeconomics.com
4/7/2015 4:28:08 AM