Philippines: Inflation hits nearly three-year high in October
November 7, 2017
In October, consumer prices rose 0.3% compared to the previous month, down from September’s 0.5% increase. The rise was driven by higher prices for food and non-alcoholic beverages—especially for meat and fruit and vegetables—and for alcoholic beverages and tobacco. Higher prices for fruit and vegetables can be ascribed to the effects on supply of Typhoon Jolina, Tropical Depression Maring and Typhoon Paolo, while the increase in meat prices can be traced back to the import ban on Brazilian meat products.
Inflation came in at 3.5% in October, up from September’s 3.4% reading. Although the reading was the highest since November 2014, it remained within the Central Bank’s target range for the 2017–2020 period, set at 3.0% plus or minus one percentage point. Meanwhile, annual average inflation inched up to 3.0% from September’s 2.9%.
Core consumer prices, which exclude volatile items such as foodstuffs and oil, remained unchanged in October, decelerating from September’s 0.5% increase. Finally, core inflation in October was 3.2%, marginally down from September’s 2.9%.