Philippines Inflation Rate at Over 3-Year Low

The Philippines' annual inflation rate fell to 0.9 percent in September 2019 from 1.7 percent in the previous month and below market expectations of 1.1 percent. It was the lowest inflation since May of 2016, as both prices of food and transport cost fell while housing inflation slowed.
Agna Gabriel | agna.gabriel@tradingeconomics.com 10/4/2019 8:23:46 AM
Year-on-year, prices of food and non-alcoholic beverages dropped 0.9 percent in September, compared to a 0.6 percent gain in August. Rice prices posted its largest fall so far this year (-8.9 percent), due to a supply surge after volume limits for imported rice were removed with the Rice Tariffication Law that was enacted last February. Prices also fell for bread and cereals (-6 percent), corn (-4.1 percent), sugar, jam, honey (-4.1 percent), and vegetables (-4.7 percent). Conversely, cost rose further for food products, N.E.C (6.3 percent); meat (2.4 percent); other cereals, flours, cereal preparation, bread, pasta and other bakery products (3 percent); fish (1.4 percent); meat (2.4 percent); and oils & fats (1.2 percent).

Also, inflation eased for housing, water, electricity, gas and other fuels (0.8 percent vs 1.8 percent); recreation and culture (1.4 percent vs 1.8 percent), communication (0.2 percent vs 0.3 percent), and restaurant and miscellaneous goods and services (3 percent vs 3.2 percent) In addition, transport prices fell further (-0.9 percent vs 0.2 percent). On the other hand, inflation was unchanged for furnishing, household equipment and routine maintenance (at 2.9 percent), health (at 3.1 percent), and education (at 4.6 percent); while cost rose faster for alcoholic beverages and tobacco (14.3 percent vs 10.1 percent).

On a monthly basis, consumer prices rose by 0.2 percent in September, the same as in August. Prices increased for food and non-alcoholic beverages (0.2 percent), alcoholic beverages and tobacco (4.2 percent), clothing and footwear (0.2 percent), furnishing, household equipment and routine maintenance (2.5 percent), health (0.2 percent), transport (1.9 percent), and restaurant and miscellaneous goods and services (1.7 percent). Meantime, cost was flat for communication, recreation & culture, and education. 

Philippines Inflation Rate at Over 3-Year Low