Philippines annual inflation rate eased to 4.4 percent in June of 2014 from 4.5 percent in the previous month, driven by softening prices of alcoholic beverages and tobacco, utilities, housing and leisure. Though inflation is slowing, it is still closer to the upper bound of the central bank’s target range 3 to 5 percent for this year.
Year-on-year, slower prices pressure came from alcoholic beverages and tobacco, which eased to 3.7 percent in June from a 6.7 percent increase in May and from housing, water, electricity, gas and other fuels (up 2.3 percent from 3.7 percent in the previous month). In addition, cost of transport decelerated to 1.3 percent from 1.5 percent in the preceding month while cost of recreation and culture went up 1.2 percent. The rest of the commodity groups either had faster annual growths or retained their last month’s rate.
Excluding selected food and energy items, core inflation eased to 2.8 percent in June. It was 3.1 percent last month and 2.8 percent in the same month a year ago.
The year-on-year growth of the food alone index in the country climbed 7.8 percent in June 2014. It was pegged at 7.1 percent last month and 2.3 percent in June 2013.
On a monthly basis, the inflation rate slowed to 0.4 percent in June from 0.5 percent in May. The highest upward pressures came from education prices (up 4.8 percent) while cost of food and non-alcoholic beverages rose at a faster 1 percent. However, cost of utilities including housing, water, electricity, gas and other fuel in the month showed a 0.8 percent decrease while cost of health, transport and communication were relatively stable.
7/4/2014 9:16:04 AM