Philippines: Inflation inches down in August
September 6, 2016
In August, consumer prices increased 0.1% over the previous month, which was in line with July’s increase. August’s soft rise mainly reflected higher prices for food and non-alcoholic beverages.
Inflation was 1.8% in August, inching down from the 1.9% recorded in July and marking the lowest reading since May 2016. Annual average inflation inched up to a seven-month high of 1.3% from the 1.2% recorded in July. Annual average inflation is an important indicator as the Central Bank uses it as a guide for monetary policy, with an inflation target for the 2016–2018 period set at 3.0% plus/minus one percentage point.
Core consumer prices, which exclude volatile items such as foodstuffs and oil, rose 0.1% in August over the previous month, matching July’s reading. Finally, core inflation in August accelerated to an eight-month high of 2.0% from July’s 1.9%.