Philippines: Weather-related supply disruptions drive inflation to nearly three-year high
August 5, 2014
In July, consumer prices rose 0.6% over the previous month, which exceeded the 0.4% rise recorded in June. July’s increase was driven by higher food prices that resulted from tight domestic supply conditions caused by weather-related production interruptions. As a result of the higher monthly figure, annual inflation rose from 4.4% in June to 4.9% in July, which 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 3.6% in June to 3.8% in July.
The core inflation index, which excludes volatile items such as food and oil, increased 0.2% over the previous month in July, mirroring June’s figure. Finally, annual core inflation rose from 2.8% in June to 3.0% in July.