The Philippines' annual inflation rate increased to 2.5 percent in December 2019 from 1.3 percent in the previous month and beating market estimates of 2.1 percent. This was the highest inflation rate since June, driven by prices of food & non-alcoholic beverages (1.7% vs flat reading in November), mainly reflecting seasonal effects of higher demand during the Christmas season and the impact of recent typhoons on crops. Additional upward pressure came from cost of transport (2.2% vs -2.4%), namely domestic pump prices (17.1%); housing, water, electricity, gas & other fuels (1.9% vs 1.2%); furnishings (3.1% vs 2.8%) and alcoholic beverages & tobacco (18.4% 17.6%). Meanwhile, inflation was steady for education (at 4.6%); recreation & culture (at 1.4%); restaurant, miscellaneous goods & services (at 2.7%) and communication (at 0.3%). On a monthly basis, consumer prices rose by 0.7 percent in December, the highest since September 2018, after a 0.25 percent gain in November. Inflation Rate in Philippines averaged 8.30 percent from 1958 until 2019, reaching an all time high of 62.80 percent in September of 1984 and a record low of -2.10 percent in January of 1959. source: Philippine Statistics Authority
Inflation Rate in Philippines is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Philippines to stand at 3.50 in 12 months time. In the long-term, the Philippines Inflation Rate is projected to trend around 3.30 percent in 2020, according to our econometric models.
Philippines Inflation Rate
In Philippines, the most important categories in the Consumer Price Index are: food and non-alcoholic beverages (39 percent of total weight); housing, water, electricity, gas and other fuels (22 percent) and transport (8 percent). The index also includes health (3 percent), education (3 percent), clothing and footwear (3 percent), communication (2 percent) and recreation and culture (2 percent). Alcoholic beverages, tobacco, furnishing, household equipment, restaurants and other goods and services account for the remaining 15 percent.