Philippines: Inflation falls to lowest level since May in August
September 4, 2020
Consumer prices fell a seasonally-adjusted 0.16% in August over the previous month, contrasting the 0.49% increase logged in July. August's result marked the sharpest fall in prices since February, and was driven by lower food prices.
Inflation inched down to 2.4% in August, from July’s 2.7%, but remained within the Central Bank’s target range of 2.0%–4.0%. August's result marked the weakest inflation rate since May. Annual average inflation remained at July's 2.1% in August. Core inflation fell to 3.1% from July’s 3.3%.
Mild price pressures provide scope for the Central Bank to continue to adopt a highly accommodative stance to combat the Covid-19 fallout.
Author: Oliver Reynolds, Economist