Philippines: Inflation moderates in January
February 5, 2015
In January, consumer prices rose 0.4% over the previous month, contrasting December’s 0.2% decline. January’s increase was largely driven by higher prices for foodstuff and housing.
Annual inflation dropped from December’s 2.7% to 2.4% in January, the lowest level in 17 months. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, in January stood at 4.0%, which was a notch down from December’s 4.2%. Thus, average inflation in January rested just at the upper bound of the Central Bank’s target range.
The monthly core inflation index, which excludes volatile items such as food and oil, in January rose 0.6% over the previous month, coming in above December’s flat reading. Finally, annual core inflation inched down from December’s 2.3% to 2.2% in January.