Philippines Inflation


Philippines: Inflation falls to record-low in June

July 7, 2015

In June, consumer prices rose a mild 0.1% over the previous month, contrasting May’s 0.1% decrease. June’s increase reflected higher prices for education.

Inflation dropped from 1.6% in May to 1.2% in June, thus reaching the lowest reading on record. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged down from 3.4% in May to 3.1% in June, which marked the lowest value since February 2014. Despite the drop, average inflation in June rested within the Central Bank’s inflation target range.

Core consumer prices, which exclude volatile items such as food and oil, in June rose 0.1% over the previous month, which was up from the flat reading seen in May. Finally, core inflation moderated from May’s 2.2% to 2.0% in June.

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 2.5% in 2015, which is down 0.2 percentage points from last month’s projection. For 2016, panelists see average inflation of 3.3%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation June 2015

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

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