Philippines Inflation Rate Slows Further in June


Philippines annual inflation rate eased to 1.2 percent in June of 2015 from 1.6 percent in May, below market forecasts. It is the lowest rate since mid-1987, as cost of housing and utilities keeps declining and prices of food and non-alcoholic beverages slowed.

Year-on-year, prices fell for housing, water, electricity, gas and other fuels (-1.3 percent in June from -1.5 percent in May) and communication (-0.1 percent from -0.1 percent).

Prices moderated for: heavily-weighted food and non-alcoholic beverages (+2.1 percent from +3.2 percent); clothing and footwear (+2.5 percent from +2.6 percent); furnishing, household equipment and routine maintenance (+1.9 percent from +2.2 percent); health (+2.2 percent from +2.3 percent) and education (+3.7 percent from +5.1 percent).

While cost increased for alcoholic beverages and tobacco (+3.8 percent from +3.7 percent) and transport (+0.2 percent from +0.1 percent), prices remained stable for: recreation and culture (+1.1 percent) and restaurant and miscellaneous goods and services (+1.2 percent).

Core inflation was recorded at 2.0 percent year-on-year in June, slowing from a 2.2 percent increase in the preceding month.

On a monthly basis, consumer prices rose 0.1 percent, following a 0.1 percent drop in May. Prices fell for: food and non-alcoholic beverages (-0.1 percent) and housing, water, electricity, gas and other fuels (-0.6 percent). Cost remained unchanged for: alcoholic beverages and tobacco (+0.2 percent), communication (+0.0 percent) and furnishing, household equipment and routine maintenance (+0.1 percent) and health (+0.1 percent). While cost moderated for transport (+0.2 percent), prices increased for clothing and footwear (+0.2 percent); recreation and culture (+0.3 percent) and education (+3.5 percent from +0.0 percent).

Philippines Inflation Rate Slows Further in June


National Statistics Office l Rida Husna l rida@tradingeconomics.com
7/7/2015 10:49:16 AM