Philippines August Inflation Rate at Near 9-1/2 Year High


The Philippines' annual inflation rate rose to 6.4 percent in August of 2018 from 5.7 percent in the previous month, above market estimates of 5.9 percent. It is the highest reading since March 2009, mainly due to a jump in cost of food and non-alcoholic beverages.

Year-on-year, prices of heavily-weighted food and non-alcoholic beverages increased by 8.5 percent year-on-year, following a 7.1 percent in July. It is the highest food inflation since March 2009. In addition, cost rose at a faster rate for: alcoholic beverages and tobacco (21.6 percent from 21.5 percent); furnishing, household equipment and routine maintenance (3.5 percent from 3.3 percent); health (4 percent from 3.7 percent); restaurant & miscellaneous goods and services (4 percent from 3.7 percent) and recreation and culture (2.4 percent from 0.9 percent). On the other hand, inflation slowed for: housing, water, electricity, gas and other fuels (5.5 percent from 5.6 percent); transport (7.8 percent from 7.9 percent); communication (0.4 percent from 0.5 percent). Meantime, inflation was steady for clothing and footwear (at 2.4 percent). 

On a monthly basis, consumer prices went up 0.9 percent, after a 0.5 percent rise in July. Prices increased for: food and non-alcoholic beverages (1.6 percent); alcoholic beverages & tobacco (0.4 percent); clothing and footwear (0.1 percent); housing, water, electricity, gas and other fuels (0.2 percent); furnishing, household equipment and routine maintenance of the house (0.3 percent); health (0.3 percent); transport (0.8 percent); recreation and culture (1.5 percent); and restaurants and miscellaneous goods and services (0.4 percent), and education (0.1 percent). On the other hand, inflation was flat for communication.

In March 2018, Philippine Statistics Authority decided to rebase CPI series to 2012 from 2006 in order to accommodate the economic changes in the country.

The central bank set an inflation target range of between 2 to 4 percent from 2018 to 2020.
 

Philippines August Inflation Rate at Near 9-1/2 Year High


Philippine Statistics Authority l Chusnul Ch Manan | chusnul@tradingeconomics.com
9/5/2018 11:10:56 AM