Philippines Inflation


Philippines: Despite slight decline, inflation remains high in June

July 7, 2014

In June, consumer prices rose 0.4% over the previous month, which came in just under the 0.5% rise recorded in May. June's print mostly resulted from an increase in prices for education and for food and non-alcoholic beverages. As a result of the lower monthly figure, annual inflation inched down from 4.5% in May, which had marked the highest reading since November 2011, to 4.4% in June. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged up from 3.4% in May to 3.6% in June.

The core inflation index, which excludes volatile items such as food and oil, increased 0.2% over the previous month, which represents a slight slowdown over the 0.3% rise recorded in May. Finally, annual core inflation decreased from 3.1% in May to 2.8% in June.

The Central Bank’s target inflation rate is 4.0% plus/minus 1.0 percentage points for this year. For 2015, the inflation target is 3.0% plus/minus 1.0 percentage points. FocusEconomics Consensus Forecast panelists expect annual inflation to average 4.0% in 2014, which is unchanged from last month’s forecast. For 2015, the panel expects inflation to average 3.7%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation June 2014

Note: Annual and monthly variation of consumer price index in %.
Source: National Statistics Office (NSO).

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