Philippines April Inflation Rate Slows to 16-Month Low of 3%


The Philippines' annual inflation rate eased to 3.0 percent in April of 2019 from 3.3 percent in the previous month and matching market expectations. It was the lowest inflation rate since December 2017, mainly due to a slowdown in cost of both food and housing.

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

Year-on-year, prices of food and non-alcoholic beverages increased by 3.0 percent in April, slowing from a 3.4 percent rise in March and reaching the lowest food inflation in 17 months. In addition, cost rose at a softer rate for alcoholic beverages and tobacco (9.9 percent vs 10.8 percent); clothing and footwear (2.4 percent vs 2.5 percent); housing, water, electricity, gas and other fuels (3.2 percent vs 3.4 percent); health (3.7 percent vs 3.9 percent); furnishing, household equipment and routine maintenance (3.2 percent vs 3.4 percent); and restaurants and miscellaneous goods and services (3.5 percent vs 3.7 percent). Also, cost of education continued to fall (-3.8 percent, the same as in March). In contrast, inflation was steady for recreation and culture (at 3.1 percent), while it quickened for transport (3.8 percent vs 3.3 percent) and communication (0.4 percent vs 0.3 percent).

On a monthly basis, consumer prices rose by 0.2 percent in April, after a 0.1 percent gain in the previous three months and marking the fourth straight month of rise. Cost went up for: food and non-alcoholic beverages (0.1 percent); alcoholic beverages and tobacco (0.5 percent); clothing and footwear (0.2 percent); housing, water, electricity, gas and other fuels (0.1 percent); furnishing, household equipment and routine maintenance (0.1 percent); health (0.3 percent); transport (1.2 percent); recreation and culture (0.2 percent); and restaurants and miscellaneous goods and services (0.2 percent). Conversely, cost of education fell (-0.2 percent).

Philippines April Inflation Rate Slows to 16-Month Low of 3%


PSA l Rida Husna | rida@tradingeconomics.com
5/7/2019 1:32:59 PM