Philippines Inflation


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.

The Central Bank’s target inflation rate is 3.0% plus/minus 1.0 percentage point for 2015 and 2016. FocusEconomics Consensus Forecast panelists expect annual inflation to average 3.3% in 2015, which is down 0.4 percentage points from last month’s projection. For 2016, panelists see average inflation of 3.6%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation January 2015

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

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