Philippines February Inflation Rate Slows to A Year-Low


The Philippines' annual inflation rate eased to 3.8 percent in February of 2019 from 4.4 percent in the previous month and below market expectations of 4 percent. It was the lowest inflation rate since February last year, due to a slowdown in cost of food, housing and transport.

Year-on-year, prices of food and non-alcoholic beverages increased by 4.7 percent in February, slower than a 5.6 percent rise in January and marking the lowest food inflation in 13 months. In addition, cost rose at a softer rate for: alcoholic beverages and tobacco (12.2 percent vs 16.1 percent in January); clothing and footwear (2.4 percent vs 2.5 percent); housing, water, electricity, gas and other fuels (3.7 percent vs 4 percent); furnishing, household equipment and routine maintenance rose slightly faster (3.8 percent vs 3.9 percent); health (4.2 percent vs 4.3 percent); recreation and culture (3.1 percent vs 3.2 percent); and restaurants and miscellaneous goods and services (4 percent vs 4.3 percent). Also, cost of transport went up 1.2 percent, less than a 2.5 percent rise in a month earlier. In addition, cost of education continued to fall (-3.8 percent, the same as in January). On the other hand, inflation was steady for communication (at 0.4 percent). 

On a monthly basis
, consumer prices rose by 0.1 percent in February, the same as in a month earlier and marking the second straight month of rise. Cost went up for: alcoholic beverages and tobacco (0.6 percent); clothing and footwear (0.1 percent); housing, water, electricity, gas and other fuels (0.2 percent); furnishing, household equipment and routine maintenance (0.3 percent); health (0.2 percent); transport (0.1 percent); recreation and culture (0.2 percent); and restaurants and miscellaneous goods and services (0.3 percent), while was flat for: food and non-alcoholic beverages. In contrast, cost fell for education (-0.1 percent) .


The central bank set an inflation target range of between 2 to 4 percent from 2018 to 2020.

Philippines February Inflation Rate Slows to A Year-Low


PSA l Rida Husna | rida@tradingeconomics.com
3/5/2019 1:56:54 PM