Inflation, or the rate of change in prices, slowed to only 3.9 percent in December from 4.1 percent the previous November, according to the Philippine Statistics Authority.
This was well within the forecast range projected by the Bangko Sentral ng Pilipinas that early on said the inflation rate was seen to range from 3.6 percent to no more than 4.4 percent.
This brings the full-year inflation rate to 6 percent and in keeping with expectations for commodities prices of services and goods across the Philippines to come down from as high as 8.7 percent in January last year.
The PSA also reported that core inflation, which nets out certain food and volatile energy items, similarly slowed to 4.4 percent from 4.7 percent and pushed the likelihood that the BSP’s tightening cycle has ended. BSP governor Eli Remolona had said that such an event was “on the table” the last time the monetary authority was asked on the likelihood of responding to any more price pressures.
The inflation reading in December, the lowest since February 2022, also proved less than market projections averaging 4.1 percent.
