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.