Philippines Inflation Rate at 3-1/2-Year Low

The Philippines' annual inflation rate edged down to 0.8 percent in October 2019 from 0.9 percent in the previous month and in line with market estimates. This was the lowest inflation rate since April 2016, as both prices of food and transport declined further amid a softer rise in cost of housing.
PSA l Rida Husna | rida@tradingeconomics.com 11/5/2019 1:55:08 AM
Year-on-year, prices of food and non-alcoholic beverages dropped 0.9 percent in October, the same as in September. Rice prices posted its largest fall so far this year (-9.7 percent), due to a supply surge after volume limits for imported rice were removed with the Rice Tariffication Law that was enacted last February. Prices also fell for bread and cereals (-6.6 percent), corn (-3.9 percent), sugar, jam, honey (-4.3 percent), and vegetables (-0.8 percent). Conversely, cost rose further for food products, N.E.C (6.1 percent); meat (2.7 percent); other cereals, flours, cereal preparation, bread, pasta and other bakery products (2.8 percent); fish (0.8 percent);; and oils & fats (0.8 percent).

Also, inflation eased for housing, water, electricity, gas and other fuels (0.6 percent vs 0.8 percent); furnishing, household equipment and routine maintenance (2.7 percent vs 2.9 percent); health (2.9 percent vs 3.1 percent); and restaurant and miscellaneous goods and services (2.9 percent vs 3 percent).  In addition, transport prices fell further (-1.7 percent vs -0.9 percent). On the other hand, inflation was unchanged for communication (at 0.2 percent), education (at 4.6 percent), and recreation and culture (at 1.4 percent)l while price of alcoholic beverages and tobacco rose faster (16.5 percent vs 14.3 percent).

On a monthly basis, consumer prices rose by 0.2 percent in October, the same as in september. Prices increased for food and non-alcoholic beverages (0.2 percent); alcoholic beverages and tobacco (2.3 percent); clothing and footwear (0.2 percent); furnishing, household equipment and routine maintenance (0.1 percent), health (0.2 percent), transport (0.2 percent), and restaurant and miscellaneous goods and services (0.1 percent). Meantime, cost was flat for both communication, recreation & culture, and education. 

Philippines Inflation Rate at 3-1/2-Year Low