Philippines Inflation Rate Up to 2-1/2-Year High


Philippines annual inflation rate accelerated to 4.5 percent in May of 2014 from 4.1 percent in the previous month, driven by higher food, utilities and housing costs. It is the highest rate in thirty months, approaching the upper bound of the central bank’s target range 3 to 5 percent.

Upward price pressures came from food and non-alcoholic beverages (6.7 percent); clothing and footwear (3.4 percent); housing, water, electricity, gas and other fuels (3.7 percent); furnishing, household equipment and routine maintenance of the house (2.5 percent); transport (1.5 percent); and communication (0.1 percent). The rest of the commodity groups either had slower annual growths or retained their last month’s rate.

The country’s food alone index went up 7.1 percent in May 2014. It reached 6.5 percent last month and 1.9 percent in the same period a year ago. All the food groups recorded higher annual increases.

On a monthly basis, consumer prices rose at a faster 0.5 percent in May, mainly driven by a 0.7 percent increase in cost of food and non-alcoholic beverages. In addition, higher growth rates were seen in alcoholic beverages and tobacco and clothing and footwear indices at 0.3 percent and in furnishing, household equipment and routine maintenance of house at 0.2 percent. 

Philippines Inflation Rate Up to 2-1/2-Year High


National Statistics Office | Joana Taborda | joana.taborda@tradingeconomics.com
6/5/2014 9:55:09 AM