Philippines: Inflation sinks further below Central Bank target range in October
November 5, 2019
Consumer prices rose 0.17% month-on-month in October, matching September’s increase. Higher prices for alcoholic beverages and tobacco offset flat price growth for education and communication.
Inflation ticked down to 0.8% in October from 0.9% in September, consequently falling further below the lower limit of the Central Bank’s target band of 2.0%–4.0%. Core inflation, which excludes volatile food and energy prices, was stable at 2.7%.
Moving forward, inflation should strengthen, boosted by stronger economic activity, the pass-through from the Bank’s previous rate cuts and as last year’s high base effect fades.
Author: Lindsey Ice, Economist