Inflation in Philippines
Philippines - Inflation
Inflation falls below Central Bank target range in August
Consumer prices rose 0.17% over the prior month in August, down from the 0.25% increase in July. Food and non-alcoholic beverages; alcoholic beverages and tobacco; and education logged higher prices in August. On the other hand, transport, and housing and utilities costs fell in the month.
Inflation decelerated sharply to an over near three-year low of 1.7% in August from 2.4% in July, thus falling 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, edged down to an over one-and-a-half-year low of 2.9% in August from 3.2% in July, while annual average inflation eased to 4.1% from 4.5%.
Sustained deflationary pressures in the third quarter strengthens the case for another rate cut by the BSP at its 26 September meeting. Commenting on ING’s scenario, economist Nicholas Mapa, noted:
“A few weeks back, BSP Governor Diokno pledged to cut policy rates by another 25 bps before the end of the year. With inflation careening below the BSP’s own target, we expect the Governor to deliver on his pledge and cut policy rates by an additional 25 bps at the 26 September meeting.”
FocusEconomics Consensus Forecast panelists expect inflation to average 2.9% in 2019, which is down 0.1 percentage points from last month’s projection. For 2020, panelists see average inflation of 3.3%.
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||4.47||-4.11 %||Sep 04|
|Exchange Rate||51.88||0.02 %||Sep 04|
|Stock Market||7,841||0.66 %||Sep 04|
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September 10, 2019
Merchandise exports grew 3.5% in July, up from June’s 3.3% growth and carrying the sluggish recovery in export growth into the third quarter. Stronger growth in July was largely due to robust growth in agricultural sales, particularly for bananas, while exports of machinery and transport, gold—which is experiencing strong safe-haven demand—and electronic equipment and parts also grew at strong rates in the month.
September 5, 2019
Consumer prices rose 0.17% over the prior month in August, down from the 0.25% increase in July.
September 2, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, ticked down to 51.9 in August from July’s six-month high of 52.1 in July.
August 15, 2019
Cash remittances from Overseas Filipino Workers (OFW) rose a total of USD 2.3 billion in June, declining 2.9% over the same month of the previous year.
August 8, 2019
At its 8 August monetary policy meeting, the Central Bank of the Philippines (BSP) cut the overnight reverse repurchase facility (RRP) by 25 basis points to 4.25%, as had been expected by market analysts.