Philippines Inflation


Philippines: Inflation remains at nearly three-year high in August

September 5, 2014

In August, consumer prices rose 0.3% over the previous month, which came in below the 0.6% rise recorded in July. August’s increase was driven by higher prices for selected food items and higher electricity rates. Annual inflation remained at July’s 4.9%, which had represented the highest reading since October 2011. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged up from 3.8% in July to 4.0% in August.

The core inflation index, which excludes volatile items such as food and oil, in August rose 0.3% over the previous month, which slightly exceeded July’s 0.2% increase. Finally, annual core inflation rose from 3.0% in July to 3.4% in August.

The Central Bank’s target inflation rate is 4.0% plus/minus 1.0 percentage point for this year. For 2015, the inflation target is 3.0% plus/minus 1.0 percentage point. FocusEconomics Consensus Forecast panelists expect annual inflation to average 4.3% in 2014, which is unchanged from last month’s forecast. For 2015, the panel expects inflation to average 3.9%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation July 2014 0

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

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