Major Sources of Inflation in the Philippines

The following are the major sources of inflation in the Philippines:

  • Food – 6.8%
  • Non-Alcoholic Beverage – 11.1%
  • Alcoholic Beverage and Tobacco – 21.5%
  • Clothing and Footwear – 2.4%
  • Housing, Water, Electricity, Gas and Other Fuels – 5.6%
  • Furnishings, Household Equipment, and Maintenance – 3.3%
  • Health – 3.7%
  • Transport – 7.9%
  • Communication – 0.5%
  • Recreation and Culture – 0.9%
  • Education – -0.3.9%
  • Restaurants, Miscellaneous Goods and Services – 3.7%
inflation in the philippines
Inflation in the Philippines | Image Credit | BSP

The Bangko Sentral ng Pilipinas (BSP) in its July press release said that headline inflation reached 5.7% year-on-year in July compared to 5.2% in June using the 2012-based consumer price index (CPI) series.

Core inflation increased to 4.5% in July from 4.3% in the previous month.

Month-on-month seasonally-adjusted headline inflation declined to 0.5% in July from 0.6% in June.

Higher inflation was attributed largely to the increase in prices of food, utilities, and transport services.

The tobacco inflation rate also rose due to the scheduled excise tax increase in July 2018.

An upward adjustment in electricity and water rates, as well as the provisional increase in the minimum jeepney fares also contributed to the rise in non-food inflation for the month. (BSP)