Philippines: Inflation plummets to 29-month low in February
March 6, 2012
In February, consumer prices remained unchanged over the previous month, which was below the 0.39% increase observed in January. The result mainly reflected a decline in food prices, which was offset by higher prices for housing. Annual headline inflation plunged from 4.0% in January to 2.7% in February, owing to the base effect of a spike in food prices during the same month last year. In addition, the reading marked the slowest inflation rate since September 2009. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, edged down from 4.8% in January to 4.6% in February. The Central Bank expects inflation to settle within its target of 4.0% 1% for this year and the next.