Average inflation in ’12 slows to 3.2%

MANILA—The average inflation in 2012 slowed to 3.2 percent, from the 4.6 percent recorded in the previous year, hitting the low end of the Bangko Sentral ng Pilipinas’ target range of 3 to 5 percent, the National Statistics Office (NSO) said Friday.

Also, the rate of increase in consumer prices accelerated to 2.9 percent in December, from the previous month’s 2.8 percent, on higher food, beverage and tobacco prices, the NSO reported.

Despite reports that some consumers have been stocking up on tobacco ahead of the anticipated tax hikes starting this year, the low-weighted tobacco and alcoholic beverages index hardly seemed to push consumer prices, official said.

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The 3.2 percent inflation was also the lowest since 2007, when the rate slowed to 2.9 percent due to the global financial crisis.

Core inflation, which excludes food items and fuel because of their volatile nature, eased to 3.3 percent in December from 3.4 percent in November.

The annual average core inflation also slowed to 3.7 percent in 2012 from the 4.3 percent recorded the previous.

Economists as well as retailers said the figures were not surprising given enough commodity supplies in the Philippines and a strong peso. /INQUIRER