Philippines October Inflation Rate Steady at 9-1/2 Year High


The Philippines' annual inflation rate came in at 6.7 percent in October of 2018, unchanged from the previous month but higher than market expectations of 6.5 percent. A faster rise in cost of housing and transport offset a slight slowdown in prices of food.

The latest reading remained at its highest since February 2009.

Year-on-year, prices increased faster for both housing, water, electricity, gas and other fuels (4.8 percent from 4.6 percent in September) and transport (8.8 percent from 8 percent) while cost of heavily-weighted food and non-alcoholic beverages slowed (9.4 percent from 9.7 percent), namely meat (7.5 percent), fruits (4.3 percent) and vegetables (15.8 percent).

Additionally, upward prices pressure came from: alcoholic beverages and tobacco (21.6 percent from 21.8 percent in September); clothing and footwear (2.5 percent, the same pace as in the previous month); furnishings, household equipment and routine maintenance (3.7 percent from 3.5 percent); health (4.3 percent from 4.1 percent); communication (0.5 percent, the same pace as in September); recreation and culture (3.1 percent from 3 percent); restaurant and miscellaneous goods & services (4.2 percent from 4 percent). Meanwhile, cost continued to fall for education (-3.8 percent, the same pace as in the prior month).

On a monthly basis, consumer prices went up 0.3 percent, after a 0.8 percent rise in September. Prices went up at a slower pace for: food & non-alcoholic beverages (0.1 percent vs 1.8 percent); transport (0.8 percent vs 0.9 percent); clothing & footwear (0.1 percent vs 0.3 percent) and restaurant and miscellaneous goods & services (0.2 percent vs 0.4 percent). Meantime, inflation was steady for housing & utilities (0.4 percent) and furnishing, household equipment and routine maintenance of the house (0.3 percent). Also, prices were unchanged for communication, recreation & culture and education.

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 October Inflation Rate Steady at 9-1/2 Year High


Philippine Statistics Authority l Chusnul Ch Manan | chusnul@tradingeconomics.com
11/6/2018 11:52:11 AM