Philippines Inflation Rate Edges Up in April


Philippines annual inflation rate accelerated to 4.1 percent in April of 2014, up from 3.9 percent in the previous month and compared with 2.6 percent a year earlier. Food prices quickened to its fastest rate in almost three years, as supply constraints keep pushing rice cost up.

Year-on-year, prices accelerated for food and non-alcoholic beverages (6.2 percent up from 5.8 percent in March), housing, water, electricity, gas and other fuels (3.0 percent from 2.7 percent) and transport (1.3 percent from 1.0 percent). Rice prices surged 13.5 percent in April, slower than the 16.3 percent increase last month.

In contrast, consumer prices decelerated for alcoholic beverages and tobacco (4.1 percent from 4.9 percent), clothing and footwear (3.3 percent from 3.7 percent), furnishing, household equipment and routine maintenance (2.4 percent from 2.8 percent), and health (3.0 percent from 3.3 percent).

Excluding selected food and energy items, the year-on-year core inflation was recorded at 2.9 percent in April, up from 2.8 percent in the previous month.

On a monthly basis, the inflation rate increased to 0.4 percent in April, up from a negative 0.1 percent in the previous month, mostly due to higher cost of food and non-alcoholic beverages (0.5 percent from 0.1 percent), housing, water, electricity, gas and other fuels (+0.8 percent from -0.8 percent).

In April, rice prices rose 0.4 percent, lower than the 1.1 percent increase in the previous month. In areas outside the National Capital Region (NCR), rice cost decelerated to 0.8 percent from 1.0 percent in March, while in NCR it fell 2.2 percent, due to higher supply of low-priced rice.

Philippines Inflation Rate Edges Up in April


National Statistics Office | Isabel Felino | isabel.felino@tradingeconomics.com
5/6/2014 11:36:04 AM