Inflation Picks Up in September on Food and Housing Costs

Economic Research	5 October 2016
Philippines
Economic Highlights
Inflation Picks Up in September on Food and Housing Costs The Philippines’ inflation rate accelerated to 2.3% y-o-y in September, from +1.8% in August and +1.9% in July. The higher rate was caused by faster increases in the prices of food & non-alcoholic beverages, alcoholic beverages & tobacco, clothing & footwear, and costs of housing & utilities and furnishing & housing equipment. Going forward, low global crude oil prices will likely continue to keep price pressure low in the coming months, while inflation expectations remain broadly stable. As a whole, we expect inflation rate to inch up to 1.6% in 2016, from +1.4% registered in 2015. For 2017, we expect inflation to rise to an average rate of 2.2%, amid improvement in domestic economic growth. A tame inflation, coupled with economic growth remains relatively strong, suggests that the central bank will likely keep the benchmark overnight policy rate stable at 3.00% for 2016 and 2017. Economist:  Rizki Fajar  | +6221 2970 7065
To access our recent reports please click on the links below: 04 Oct: Money Supply And Bank Lending Decelerates In August 23 Sep: Policy Rates Left Unchanged In September 19 Sep: Current Account Surplus Continues To Dwindle in 2Q 2016 09 Sep: Exports Continue To Contract By A Larger Magnitude in July 06 Sep: Inflation Moderates in August 01 Sep: Money Supply Picks Up But Bank Lending Decelerates In July