Philippines Inflation


Philippines: Inflation in May falls to lowest level in 20 years

June 5, 2015

In May, consumer prices fell 0.1% over the previous month, contrasting April’s 0.2% increase. May’s decrease reflected lower prices for electricity, gas and other fuels.

Inflation dropped from 2.2% in April to 1.6% in May, thus reaching the lowest reading in 20 years. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged down from 3.6% in April to 3.4% in May, which marked the lowest value since April 2014. Thus, average inflation in May rested within the Central Bank’s target range.

Core consumer prices, which exclude volatile items such as food and oil, in May were flat over the previous month, which was down from the 0.2% increase seen in April. Finally, core inflation moderated from April’s 2.5% to 2.2% in May.

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 2.8% in 2015, which is unchanged from last month’s projection. For 2016, panelists see average inflation of 3.4%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation May 2015 0

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

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