Philippines: Inflation reaches a near-decade high in July
August 7, 2018
In July, consumer prices rose 0.5% compared to the previous month, softening slightly from the 0.6% increase reported in June. July’s reading was driven by an increase in 10 out of the 11 components of the index. Health; alcoholic beverages and tobacco; and food and non-alcoholic beverages where the three components that recorded the steepest rises. Conversely, Prices for education recorded a sharp fall, weighing on the overall price increase.
Inflation jumped to a nearly ten-year high of 5.7% in July, up from 5.2% in June. Inflation in July 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 one percentage point. Meanwhile, annual average inflation edged up from 3.6% in June to 3.8% in July.
Author: Joffrey Simonet, Economist