Philippines Inflation January 2017


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.

FocusEconomics Consensus Forecast panelists expect annual inflation to average 1.7% in 2017, which is down 0.1 percentage points from last month’s projection. For 2018, panelists see average inflation of 2.8%.

Author: Massimo Bassetti, Economist

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Philippines Inflation Chart

Philippines Inflation January 2017

Note: Annual and monthly variation of consumer price index in %.
Source: National Statistics Office (NSO) and FocusEconomics calculations.

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