Philippines: Inflation rises in December
Latest reading: Inflation increased to 2.9% in December, from November’s 2.5%. The uptick was primarily due to stronger price pressures for housing and utilities which outweighed lower price growth for food, hospitality and textiles plus declining transport costs.
That said, annual average inflation fell to 3.2% in December (November: 3.3%).
Lastly, consumer prices increased a seasonally adjusted 0.53% from the previous month in December, picking up from November’s 0.23% increase. December’s figure marked the highest reading since July.
Panelist insight: United Overseas Bank analysts Julia Goh and Loke Siew Ting commented:
“For 2025, the country’s inflation is expected to be kept in check, staying within [Bangko Sentral Pilipinas]’s 2.0%-4.0% medium-term target range. [Upside risks] include potential upward adjustments in electricity rates, transport fares and minimum wages, the pass-through effects of digital tax and the implication of Trump administration’s foreign policy agenda on FX and commodity prices. The expected within-target inflation outlook for 2025 will provide room for the BSP to adjust its monetary policy stance as economic conditions evolve across the year.”