Philippines: Inflation continues to slow in January
February 7, 2012
In January, consumer prices increased 0.39% over the previous month, which contrasted the 0.16% decline observed in December. The result mainly reflected rising prices in the food and housing categories. Despite the monthly rise, annual headline inflation fell from 4.2% in December to 3.9% in January. Annual core inflation, which excludes the price volatility associated with items such as food and oil, was 3.4% in December, the latest month for which data are available. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, remained unchanged at December's 4.8%. The Central Bank expects inflation to settle within the target of 4.0% 1% for this year and the next.