Philippines: Inflation rises in January
February 5, 2013
In January, consumer prices rose 0.53% over the previous month, which contrasted the 0.08% decrease tallied in December. The reading mainly reflects higher prices for alcoholic beverages and tobacco.
As a result of the monthly increase, annual headline inflation inched up from 2.9% in December to 3.0% in January. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, remained unchanged at 3.1%, remaining within the Bank's target of 4.0% plus/minus 1.0 percentage points.
Finally, the core inflation index, which excludes volatile items such as food and oil, increased in January 0.78% over the previous month, while annual core inflation edged up to 3.6% (December: 3.3%).
The Central Bank expects inflation to settle within its target of 4.0% plus/minus 1.0 percentage points in both 2013 and 2014.