Philippines: Inflation creeps up to one-year high
May 5, 2011
In April, consumer prices added 0.81% over the previous month, following on a 0.29% increase observed in March. The monthly increase reflected rising prices in the housing and repairs category as well as in services. On the other hand, food prices eased in April. As a result, annual headline inflation rose from 4.3% in March to 4.5% in April, the fastest pace in 12 months. Market analysts had the inflation rising to 4.4%. Moreover, the annual core inflation rate, which excludes the price volatility associated with items such as oil and food, increased from 3.5% in March to 3.7% in April. Annual average inflation, which is the reference rate used by the Central Bank to conduct monetary policy, remained stable at 3.8% in April. Currently, annual average inflation is below the target rate of 4.0% (1% tolerance margin), set by the Bank for 2011.