Inflation in Philippines

Philippines Inflation | Economic News & Forecasts

Philippines - Inflation

Inflation eases to seven-month low in December

Consumer prices fell sharply in December, decreasing 0.6% over the previous month, following the 0.2% fall registered in November. December’s plunge marked the largest month-on-month fall in prices in over ten years. The decline was primarily driven by a steep drop in transport prices—due to spiraling global crude oil prices—and lower prices for food and non-alcoholic beverages. On the other hand, prices rose in four categories, with clothing and footwear recording the strongest price gains, whereas prices were stable in the remaining categories.

Inflation decelerated significantly in December to 5.1% from 6.0% in November. Notably, transport inflation more than halved in the month, while food inflation also eased considerably. Nevertheless, inflation remained well above the upper bound of the Central Bank’s target range for the 2018–2020 period, set at 3.0% plus or minus 1.0 percentage point. Annual average inflation meanwhile edged up to 5.2% in December from 5.0% in November.

December’s drop reaffirms inflation peaked in October and will likely continue to cool moving forward. A downward trend in inflation combined with the Fed’s more dovish tone in recent comments could give reason for the BSP to pull the brakes on its tightening cycle and could even cause the Bank to turn accommodative sooner than previously expected.

FocusEconomics Consensus Forecast panelists expect inflation to average 4.2% in 2019, which is down 0.1 percentage points from last month’s projection. For 2020, panelists see inflation of 3.7%.

Philippines - Inflation Data

2013  2014  2015  2016  2017  
Inflation Rate (CPI, annual variation in %)2.6  3.6  0.7  1.3  2.9  

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Philippines Inflation Chart


Philippines Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: National Statistics Office.

Philippines Facts

ValueChangeDate
Bond Yield6.54-4.11 %Jan 14
Exchange Rate52.200.02 %Jan 14
Stock Market8,0240.66 %Jan 14

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