Philippines' Inflation Rate Down to 4-Year Low in July


Philippines' annual headline inflation rate eased to 2.5 percent in July, the lowest since October of 2009, as most items showed small price increases. Inflation a year ago was 3.2 percent.

Prices of alcoholic beverages and tobacco slowed to 31.0 percent in July from 31.2 percent in June; cost of clothing and footwear eased to 3.1 percent from 3.3 percent. The index for housing, water, electricity, gas and other fuels slowed to 0.6 percent from 1.4 percent; furnishing, household equipment and routine maintenance of the house to 2.9 percent from 3.3 percent; recreation and culture to 2.5 percent from 2.7 percent; and restaurant and miscellaneous goods and services index, 2.0 percent from 2.1 percent. 

The rest of the commodity groups have higher annual increments with the indices of food and non-alcoholic beverages, health, and communication retaining their last month’s annual rate.

The month-on-month inflation decelerated to 0.1 percent in July from 0.5 percent in June. The index for housing, water, electricity, gas and other fuels went down by 0.2 percent in July from its June growth rate of 0.5 percent. In addition, the monthly hike in alcoholic beverages and tobacco index improved to 0.2 percent from 0.4 percent; recreation and culture index, 0.1 percent from 1.3 percent; and education index, 0.2 percent from 4.5 percent. 

The rest of the commodity groups have either higher monthly upticks or retained their respective last month’s rate.

Excluding selected food and energy items, core annual inflation improved to 2.3 percent in July from 2.8 percent in June.

Philippines


National Statistics Office | Joana Taborda | joana.taborda@tradingeconomics.com
8/6/2013 9:24:41 AM