Philippines Inflation August 2022

Philippines

Philippines: Inflation moderates in August

September 6, 2022

Inflation eased to 6.3% in August, easing marginally from July’s 6.4%. Looking at the details of the release, prices for food and non-alcoholic beverages increased at a slower pace in August, as did prices for transport. These more than offset prices for clothing and footwear growing at a brisker pace.

In contrast, annual average inflation ticked up to 4.5% in August (July: 4.4%).

Lastly, consumer prices increased a seasonally-adjusted 0.43% over the previous month in August, a smaller increase than July's 0.61% rise. August's result marked the softest rise in prices since February.

On the trajectory of inflation for the rest of 2022, analysts at the EIU commented:

“[As] the peso continues to weaken (on 5 September the local currency closed at an all-time low against the U.S. dollar), imported inflation is accelerating. Indicating strengthening demand-side pull, growth in consumer loans reached 14.7% in July, from 10.9% in June, according to latest data from the Bangko Sentral ng Pilipinas (the central bank). We will be revising up our consumer price inflation forecast for 2022 from 4.9% to 5.4%.”

FocusEconomics Consensus Forecast panelists expect inflation to average 4.9% in 2022, which is up 0.3 percentage points from last month’s forecast, and 3.9% in 2023.


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Philippines Inflation August 2022

Note: Annual and monthly variation of consumer price index in %.
Source: Central Bank of the Philippines (BSP) and FocusEconomics calculations.


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