Inflation in Philippines
Philippines - Inflation
Inflation decelerates in June
Consumer prices rose 0.08% over the previous month in June, down from the 0.17% increase in May. The softer uptick in consumer prices was principally driven by a sharp fall in transport costs while the increase in prices for food and non-alcoholic beverages slowed.
Inflation weakened to 2.7% in June from 3.2% in May, remaining within the Central Bank’s target band of 3.0% plus or minus 1.0 percentage point. Core inflation, which excludes volatile food and energy prices, eased to 3.3% in June from 3.5% in May, while annual average inflation edged down to 4.8% in June from 5.0% in May.
Commenting on the implications of slowing inflation on the Central Bank’s monetary policy stance, analysts at Nomura noted:
“Falling inflation allows BSP to focus on supporting growth, particularly at a time when fiscal spending has stalled as a result of the budget delay, adversely affecting GDP growth in Q1 and likely dragging it down into Q2 with the government running another fiscal surplus in May. We believe the slow recovery of fiscal spending in Q2 will prompt more rate cuts by BSP near term in a bid to support growth and offset some of the fiscal drag.”
FocusEconomics Consensus Forecast panelists expect inflation to average 3.2% in 2019, which is down 0.1 percentage points from last month’s projection. For 2020, panelists see average inflation of 3.4%.
Philippines - Inflation Data
|Inflation Rate (CPI, annual variation in %)||2.6||3.6||0.7||1.3||2.9|
5 years of economic forecasts for more than 30 economic indicators.
Philippines Inflation Chart
Source: National Statistics Office.
|Bond Yield||5.05||-4.11 %||Jul 11|
|Exchange Rate||51.20||0.02 %||Jul 11|
|Stock Market||8,154||0.66 %||Jul 11|
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July 15, 2019
Cash remittances from Overseas Filipino Workers (OFW) increased a total of USD 2.6 billion in May, which marked a 5.7% rise from the same month a year prior, accelerating from the 4.0% year-on-year uptick registered in April (USD 2.4 billion).
July 10, 2019
Merchandise exports grew 1.0% in annual terms in May, matching April’s revised growth figure (previously reported: +0.4% year-on-year), gradually recovering from a very weak performance in the first quarter.
July 5, 2019
Consumer prices rose 0.08% over the previous month in June, down from the 0.17% increase in May.
July 1, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by Nikkei and IHS Markit, edged up to 51.3 in June from 51.2 in May.
June 20, 2019
At its 20 June monetary policy meeting, the Central Bank of the Philippines (BSP) left the overnight reverse repurchase facility (RRP) unchanged at 4.50%, matching market analyst expectations.