Philippines Inflation


Philippines: Inflation accelerates to highest level since November 2011

June 5, 2014

In May, consumer prices edged up 0.5% over the previous month, which came in above the 0.4% rise recorded in April. The print was mostly the result of an increase in prices for housing, water and fuels, as well as for food and non-alcoholic beverages. As a result of the higher monthly figure, annual inflation rose from 4.1% in April to 4.5% in May, the highest reading since November 2011. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, inched up from 3.3% in April to 3.4% in May.

The core inflation index, which excludes volatile items such as food and oil, increased 0.3% over the previous month, which represents a deceleration over the 0.4% rise recorded in April. Finally, annual core inflation edged up from 2.9% in April to 3.1% in May.

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 3.9%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation May 2014

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

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