Philippines: Inflation edges up in June
July 5, 2013
In June, consumer prices increased 0.60% over the previous month, which came in above the 0.08% rise recorded in May. In addition, the reading overshot market expectations of a 0.55% increase. Higher prices for education along with recreation and culture were the most important drivers of the monthly rise.
Annual inflation edged up from 2.6% in May to 2.8% in June. Annual average inflation, the reference rate used by the Central Bank as a guide for monetary policy, was unchanged from the 3.1% recorded in May. At the current level, average inflation remains within the Central Bank's target of 4.0% plus/minus 1.0 percentage point.
The core inflation index, which excludes volatile items such as food and oil, rose 0.54% in June over the previous month, coming in above the 0.15% increase recorded in May. Annual core inflation inched down from 3.0% in May to 2.9% in June.
The Central Bank expects inflation to settle at the lower end of its target of 4.0% plus/minus 1.0 percentage point in both 2013 and 2014. FocusEconomics Consensus Forecast panellists expect annual inflation to average 3.4% in 2013, which is down 0.2 percentage points from last month's forecast. For 2014, the panel expects inflation to average 3.9%.