Philippines: Inflation eases in May
June 5, 2012
In May, consumer prices added 0.08% over the previous month, which was well below the 0.78% rise observed in April. The result mainly reflected a rise in prices for restaurants as well as for miscellaneous goods and services. As a result of the subdued monthly reading, annual headline inflation inched down from 3.0% in April to 2.9% in May. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, also eased from 4.2% in April to 4.1% in May. Finally, the core inflation index, which excludes the price volatility associated with items such as food and oil, added 0.2% over the previous month, driving annual core inflation up to 3.7% in May. The Central Bank expects inflation to settle within its target of 4.0% plus/minus 1% for this year and next.