MANILA: Philippine annual inflation quickened for a third straight month in December due to the faster pace of increases in food and utility costs, the statistics agency said on Tuesday (Jan 7).
The consumer price index (CPI) rose 2.9% in December, higher than the 2.6% forecast in a Reuters poll, and was above the previous month's 2.5% rate.
December's inflation print brought average inflation in 2024 to 3.2%, well within the central bank's 2%-4% target for the year, marking the first time since 2021 that the Philippines has achieved its inflation goal.
"On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP’s shift toward less restrictive monetary policy," the Bangko Sentral ng Pilipinas (BSP) said in a statement.
Core inflation, which excludes volatile food and energy items, was 2.8% in December, accelerating from 2.5% in November.
Last month, the Bangko Sentral ng Pilipinas (BSP) reduced its key interest rate by 25 basis points to 5.75%, the third consecutive cut, and flagged that further easing this year might come in "baby steps" as inflation remained a concern.
A strong majority in a Reuters poll of 24 economists in December predicted an additional 25-basis point cut every quarter over the next nine months, bringing the rate to 5.00% by the end of September 2025.
"Looking ahead, the Monetary Board will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment," the BSP said. - Reuters
