Philippines Inflation Rate Up to 2.8% in June


Philippines' annual headline inflation rate picked up to 2.8 percent in June from 2.6 percent in May. This was due to higher annual increments in the indices for alcoholic beverages and tobacco; health; transport; recreation and culture; and education. Inflation in June of 2012 was also pegged at 2.8 percent.

On a year-over-year basis, the alcoholic beverages and tobacco index at the national level went up 31.2 percent in June from 31.1 percent in May. Health costs  increased 2.8 percent from 2.7 percent; transport, 0.7 percent from -0.5 percent; prices of recreation and culture went up by 2.7 percent from 1.7 percent and cost of education increased 4.5 percent from 4.4 percent. Meanwhile, annual increases in clothing and footwear and furnishing, household equipment and routine maintenance of house indices were slower at 3.3 percent in June from their respective May rates of 3.5 percent and 3.7 percent together with that for the index of restaurant and miscellaneous goods and services index at 2.1 percent from 2.3 percent. The rest of the commodity groups retained their last month’s rate.

On a month-over-month basis, the opening of classes in June saw a 0.6 percent growth in the prices of consumer items at the national level from 0.1 percent in May. This can be attributed to upward price adjustments in the heavily-weighted food items particularly rice, fish and vegetables together with tuition fee hikes. Also contributing to the uptrend were higher charges in electricity rates and price gains in LPG and selected construction materials. Lotto tickets, selected school supplies, gasoline and diesel were also priced higher during the month. 

Excluding selected food and energy items, core annual inflation continued to slow down as it settled to 2.9 percent growth in June from 3.0 percent in May.

Philippines Inflation Rate Up to 2.8% in June


National Statistics Office | Joana Taborda | joana.taborda@tradingeconomics.com
7/5/2013 9:17:54 AM