Philippines Inflation December 2016


Philippines: Inflation hits two-year high in December

January 9, 2017

In December, consumer prices in the Philippines rose 0.3% from the previous month, decelerating from November’s 0.6% increase. The rise mainly reflected higher prices for food and non-alcoholic beverages as well as for transport and for recreation and culture.

Inflation was 2.6% in December, which was up from November’s 2.5% and the highest result in two years. Annual average inflation inched up to a 15-month high of 1.8% from the 1.7% recorded in November. 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 0.5% in December from the previous month, up from November’s 0.4% rise. Finally, core inflation in December was 2.5%, marginally higher than November’s 2.4% and the highest reading 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 December 2016

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

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