Headline inflation slowed down to 3.9 percent year-on-year in December from 4.1 percent in November and was within the Bangko Sentral’s forecast range of 3.6-4.4 percent for the month.
The resulting full-year average inflation rate for 2023 settled at 6.0 percent, which was above the government’s inflation target range of between 2 and 4 percent.
On a month-on-month seasonally adjusted basis, headline inflation was marginally higher at 0.1 percent in December from nil in the previous month. Core inflation, which excludes selected volatile food and energy items and denotes underlying demand-side price pressures, likewise moderated further to 4.4 percent year-on-year in December from 4.7 percent in November.
Both food and non-food inflation continued to decelerate in December. Non-food inflation slowed with the downward adjustment in electricity rates.
Meanwhile, year-on-year inflation rates of most key food items also fell during the month, with lower vegetable prices driving the bulk of the decline.
Eli Remolona, BSP Governor, said the latest inflation outturn is consistent with the BSP’s forecast path which suggests that inflation will continue to moderate in the coming months as a result of easing supply-side price pressures and negative base effects.
