Inflation rate up 1.5% in December

CEBU, Philippines – Philippine inflation increased last month due to price increases in tobacco, health, transport, recreation and alcoholic drinks.

The Philippine Statistics Authority (PSA) reported yesterday that consumer price index rose 1.5% in December 2015 from 1.1% in November and 2.7% in December 2014. The December inflation was within the 1.1-1.9% target of the Bangko Sentral ng Pilipinas for the month.

“The annual average headline inflation at the national level for the year 2015 was at 1.4 percent. This was slower compared to 4.1 percent in 2014,” PSA said in a statement.

Core inflation, which excludes selected food and energy items, also picked up 2.1% in December from 1.8% in November and 2.3% in December 2014.

Monthly rise in consumer prices, however, moved up at a slower pace at 0.2% in December from 0.5% in November.

The BSP earlier said in a statement the Development Budget Coordination Committee (DBCC), which sets macroeconomic targets, has maintained its 2-4% target range for inflation this year until 2018.

The inflation target is defined in terms of the average year-on-year change in the consumer price index over the calendar year.

The central bank said the target “remains suitable to the Philippine economy and is consistent with the country’s evolving price dynamics and sustained economic growth.”

It added the current low inflation environment could be sustained over the medium term. (FREEMAN)