Philippines hurt by weather-related food supply woes

Food prices have hiked sharply.

The proximate cause of the acceleration in CPI inflation, from the recent low of 2.1% in

August 2013 to 4.9% in July 2014, is largely food prices.

According to a research note from UBS, core inflation rose from 1.9% to 3.1% over the same period.

Food price inflation has accelerated from 1.8% to 8.3%. Within the food category, higher inflation was centred on, but not limited to, rice and vegetables.

Selectively over the same period: rice prices rose to 14.4% in July 2014 from 4.3% in August 2013, corn to 7.9% from 3.6%, vegetables 16.1% from -2.6%, oils and fats 7.0% from -7.3%, meat 5.1% from 2.0% while fruit rose to 5.9% from 4.3%.

The central bank attributed the increase to weather related supply concerns – specifically the sequence of typhoons that have hit the Philippines.