Philippines: Inflation hits over two-year high in January
February 7, 2017
In January, consumer prices in the Philippines rose 0.3% from the previous month, matching December’s reading. The rise mainly reflected higher prices for food and non-alcoholic beverages as well as for clothing and footwear.
Inflation was 2.7% in January, which was up from December’s 2.6% and the highest result in over two years, while annual average inflation inched up to a 16-month high of 1.9% from the 1.8% recorded in December. Annual average inflation is an important indicator as the Central Bank uses it as a guide for monetary policy, with an inflation target for the 2016–2018 period set at 3.0% plus/minus one percentage point.
Core consumer prices, which exclude volatile items such as foodstuffs and oil, rose 0.2% in January from the previous month, down from December’s 0.5% rise. Finally, core inflation in January was 2.5%, which mirrored December’s print—the highest since March 2015.