Philippines Inflation


Philippines: Inflation slows to over one year low

January 6, 2015

In December, consumer prices fell 0.2% over the previous month, following November’s 0.1% decline. December’s drop was largely driven by lower prices for electricity, gas and other fuels as well as transport.

Annual inflation dropped significantly from November’s 3.7% to 2.7% in December, the lowest level in 15 months. Meanwhile, annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, in December stood at 4.2%, which was a notch down from November’s 4.3%. Thus average inflation closed the year within the Central Bank’s target range and above 2013’s 2.9%.

The monthly core inflation index, which excludes volatile items such as food and oil, was unchanged in December over the previous month, mirroring November’s reading. Finally, annual core inflation dropped from November’s 3.1% to 3.0% in December.

The Central Bank’s target inflation rate is 3.0% plus/minus 1.0 percentage point for 2015. FocusEconomics Consensus Forecast panelists expect annual inflation to average 3.7% in 2015, which is down 0.1 percentage points from last month’s projection. For 2016, panelists see average inflation of 3.8%.

Author: Teresa Kersting, Economist

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Philippines Inflation Chart

Philippines Inflation December 2014

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

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