Philippines: Inflation falls for second straight month in June
July 5, 2012
In June, consumer prices added 0.46% over the previous month, which was well above the 0.08% rise observed in May. The result mainly reflected a rise in prices for food. Despite the stronger monthly reading, annual headline inflation inched down from 2.9% in May to 2.8% in June. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, followed suit and edged down from 4.1% in May to 3.9% in June. Finally, the core inflation index, which excludes the price volatility associated with items such as food and oil, added 0.63% over the previous month, driving annual core inflation to 3.7% in June (May: 3.7% year-on-year). The Central Bank expects inflation to settle within its target of 4.0% plus/minus 1% for this year and next.
Author: Ricardo Aceves, Senior Economist