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.