Philippines: Inflation inches up in December
January 4, 2013
In December, consumer prices fell 0.08% over the previous month, which contrasted the increase of the same magnitude tallied in November. The reading mainly reflected lower prices for housing, water, electricity, gas and other fuels.
Despite the monthly decline, annual headline inflation inched up from 2.8% in November to 2.9% in December. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged down from 3.2% in November to 3.1% in December, thus ending the year 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, fell 0.16% over the previous month, while annual core inflation inched down to 3.3% in December (November: 3.4%).
The Central Bank expects inflation to settle within its target of 4.0% plus/minus 1.0 percentage points in both 2013 and 2014.