Philippines: Inflation ticks up in August following poor weather conditions
September 5, 2017
In August, consumer prices rose 0.3% compared to the previous month, matching July’s result. The rise was driven by an increase in the prices of food and non-alcoholic beverages, which typically account for 40% of consumer expenditure in the Philippines. This was mainly because of poor weather conditions that negatively impacted food production and transportation during the month. Moreover, an increase in prices for housing, water, electricity, gas, and other fuels also notably contributed to the overall rise in consumer prices, while the prices of education and communications were essentially unchanged from July.
Inflation came in at 3.1% in August, up from July’s revised 2.8% reading (previously reported: 2.7%) and within the Central Bank’s target range for the 2017–2020 period, set at 3.0% plus or minus one percentage point. Annual average inflation ticked up to 2.9% in August from July’s 2.7% reading, the highest result since July 2015.
Core consumer prices, which exclude volatile items such as foodstuffs and oil, rose month-on-month by 0.3% in August, matching July’s revised 0.3% increase (previously reported: -0.3%). Finally, core inflation in July was 3.0%, up from July’s revised 2.8% result (previously reported: 2.1%).
Author: Edward Gardner, Economist