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.