Philippines: Inflation slows in December
January 5, 2012
In December, consumer prices declined 0.16% over the previous month, which contrasted the 0.39% increase observed in November. The result mainly reflected falling food prices. Annual headline inflation fell from 4.8% in November to 4.2% in December. Annual core inflation, which excludes the price volatility associated with items such as food and oil, moderated from 3.7% in November to 3.4% in December. Annual average inflation, which is the reference rate used by the Central Bank as a guide for monetary policy, inched up from 4.7% in November to 4.8% in December, thus ending the year within the 1% tolerance margin around the 4.0% target set by the Bank for 2011. The Central Bank expects inflation to settle within the target of 4.0% 1% for this year and the next.