Philippines Inflation


Philippines: Inflation falls in August to yet another record low

September 4, 2015

In August, consumer prices rose a mild 0.1% over the previous month, matching July’s reading. August’s modest increase mainly reflected that higher prices for food items more than offset lower prices for electricity, gas and other fuels.

Inflation dropped from 0.8% in July to yet another record low, 0.6%, in August. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged down from 2.8% in July to 2.4% in August, which marked the lowest value since January 2004. Despite the drop, average inflation in August rested within the Central Bank’s inflation target range of 2.0% to 4.0%.

Core consumer prices, which exclude volatile items such as food and oil, in August were unchanged over the previous month, coming in marginally below July’s 0.1% increase. Finally, core inflation moderated from July’s 2.6% to 2.4% in August.

The Central Bank’s target inflation rate is 3.0% plus/minus 1.0 percentage point for 2015 and 2016. FocusEconomics Consensus Forecast panelists expect annual inflation to average 1.9% in 2015, which is down 0.2 percentage points from last month’s projection. For 2016, panelists see average inflation 3.1%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation August 2015 0

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

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