Philippines: Inflation jumps to near 10-year high in August
September 5, 2018
Consumer prices rose 0.9% over the previous month in August, up from the 0.5% increase registered in July. August’s result came on the back of higher prices for 10 out of the 11 components of the index, with food and non-alcoholic beverages, recreation and culture, and transport recording the strongest price increases. Meanwhile, prices for communication were stable.
Inflation accelerated to a near-decade high of 6.4% in August from 5.7% in July. Consequently, inflation moved further above the upper bound of the Central Bank’s target range for the 2017–2020 period, set at 3.0% plus or minus 1.0 percentage point. Meanwhile, annual average inflation edged up to 4.2% in August from 3.8% in July.
Philippines Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 4.6% in 2018, which is up 0.1 percentage points from last month’s projection. For 2019, panelists see inflation of 3.9%.
Author: Lindsey Ice, Economist