Philippines Inflation Rate Slows to 4-Month Low of 6.0%


The Philippines' annual inflation rate fell to a 4-month low of 6.0 percent in November of 2018 from a 9-1/2-year high of 6.7 percent in the previous two months. The latest figure was below market consensus of 6.2 percent, mainly driven by a marked slowdown in cost of food and housing.

Year-on-year, prices of food and non-alcoholic beverages increased by 8 percent, easing from a 9.4 percent rise in October and marking the lowest food inflation since July. In addition, cost slowed for housing, water, electricity, gas and other fuels (4.2 percent from 4.8 percent in October); and communication (0.4 percent vs 0.5 percent). Also, cost of education continued to fall (-3.8 percent, the same as in October). On the other hand, prices increased faster for alcoholic beverages and tobacco (21.8 percent vs 21.6 percent); clothing and footwear (2.7 percent vs 2.5 percent); furnishing, household equipment and routine maintenance (4 percent vs 3.7 percent); health (4.5 percent vs 4.3 percent); recreation and culture (3.2 percent vs 3.1 percent); and restaurants and miscellaneous goods and services (4.5 percent vs 4.2 percent). Additionally, inflation was steady for transport (at 8.9 percent, the same as in October).

On a monthly basis, consumer prices fell 0.2 percent, after a 0.3 percent rise in October and reaching the first monthly decline since May 2017. Cost decreased for food and non-alcoholic beverages (-0.7 percent from 0.1 percent) and housing and utilites (-0.1 percent from 0.4 percent). Also, cost of transport eased (0.6 percent from 0.9 percent). Meanwhile, prices advanced further for alcoholic beverages and tobacco (0.5 percent from 0.4 percent); clothing and footwear (0.3 percent from 0.1 percent); education (0.1 percent from a flat reading) and restaurants and miscellaneous goods and services (0.5 percent from 0.2 percent). Additionally, inflation was steady furnishing, household equipment and routine maintenance (at 0.3 percent, the same as in October); health (at 0.3 percent) and recreation and culture (at 0.1 percent).

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


Philippines Inflation Rate Slows to 4-Month Low of 6.0%


PSA l Rida | rida@tradingeconomics.com
12/5/2018 11:51:00 AM