Philippines Inflation Lowest Since March 1987


Philippines annual inflation rate eased to 0.6 percent in August of 2015 from 0.8 percent in July and below market consensus. It is the lowest figure in more than two decades as cost of housing and utilities and transport declined further and prices of food and non-alcoholic beverages slowed. Core inflation also declined to a record low of 1.6 percent.

Year-on-year, prices fell for: housing, water, electricity, gas and other fuels (-1.7 percent in August from -1.1 percent in July) and transport (-0.6 percent from -0.5 percent) and remined unchanged for communication. Inflation moderated for: heavily-weighted food and non-alcoholic beverages (+1.2 percent from +1.3 percent in July); alcoholic beverages and tobacco (+3.7 percent from +3.8 percent); clothing and footwear (+2.3 percent from +2.6 percent); furnishing, household equipment and routine maintenance (+1.7 percent from +1.8 percent); health (+1.8 percent from +1.9 percent) and recreation and culture (+1.0 percent from +1.1 percent). Only cost of education increased more than in the previous month: (+3.6 percent from +3.5 percent).

For 2015, the country's central bank lowered its inflation forecast to 1.8 percent from 2.1 percent.

Core inflation was recorded at 1.6 percent year-on-year in August, the lowest on record.

On a monthly basis, consumer prices rose 0.1 percent, the same as in July. Inflation remained stable for: food and non-alcoholic beverages (+0.4 percent); recreation and culture (+0.1 percent) and education (+0.1 percent). Cost moderated for: alcoholic beverages and tobacco (+0.1 percent), clothing and footwear (+0.1 percent), health (+0.0 percent), communication (+0.0 percent) and restaurant and miscellaneous goods and services (+0.1 percent). Prices declined for: housing, water, electricity, gas and other fuels (-0.4 percent) and transport (-0.5 percent).

Philippines Inflation Lowest Since March 1987


PSA l Rida Husna l rida@tradingeconomics.com
9/4/2015 11:42:59 AM