Philippines: Inflation decelerates in October
November 6, 2012
In October, consumer prices fell 0.08% over the previous month, which mirrored the result tallied in September. The reading mainly reflected lower prices for food. As a result of the monthly drop, annual headline inflation dropped from 3.6% in September to 3.1% in October. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged down from 3.6% in September to 3.4% in October. Finally, the core inflation index, which excludes volatile items such as food and oil, was flat over the previous month, driving annual core inflation down to 3.6% in October (September: 3.8%). The Central Bank expects inflation to settle within its target of 4.0% plus/minus 1.0 percentage points for this year and next.