05.02.202106:42:00UTC+00Philippines Inflation Highest In 2 Years

The Philippines' inflation rose to a two-year high in January, data from the Philippine Statistics Authority showed on Friday.

The consumer price index rose 4.2 percent annually in January, following a 3.5 percent increase in December. Economists had expected inflation to remain unchanged at 3.5 percent.

The rate was the highest since January 2019, when prices rose 4.4 percent.

The latest inflation was mainly due to the rise in the heavily-weighted food and non-alcoholic beverages by 6.2 percent.

Transportation cost grew 8.6 percent and prices for restaurant and miscellaneous goods and services rose 3.0 percent.

Meanwhile, prices for alcoholic beverages and tobacco declined 11.7 percent and those of furnishing, household equipment and routine maintenance fell 2.9 percent.

Core inflation, which excludes prices of selected food and energy items, rose to 3.4 percent from 3.3 percent in the previous month.

On a monthly basis, consumer prices rose 0.9 percent in January, following a 0.8 percent increase in the prior month.

Separate data from the statistical office showed that the production index value declined 5.1 percent yearly in December, following an 11.5 percent fall in November.

The production index volume fell 2.8 percent annually in December, following an 8.6 percent decrease in the preceding month.

Data also showed that the producer prices fell 2.4 percent year-on-year in December, following a 3.2 percent decline in November.