Philippines annual inflation rose more than expected in February to a 5-month high on higher food prices, data from the National Statistics Office showed Tuesday.
The headline consumer price index climbed at a pace of 3.4 percent year-on-year in February, following a 3 percent rise in January. It was forecast to increase 3.3 percent.
At the same time, core annual inflation, excluding selected food and energy items, came in at 3.8 percent, up from 3.6 percent in the prior month.
Alcoholic beverages and tobacco prices continued to register double-digit growth at 29 percent in February compared to 17.3 percent a month ago. The annual inflation of the heavily-weighted food and non-alcoholic beverages index likewise escalated to 2.9 percent from 2.3 percent, data showed.
In a separate communique, the statistical office said producer prices declined 7.6 percent annually in January, sharper than the 3.6 percent fall seen in the previous month. Month-on-month, prices were down 1.6 percent.
In January, the central bank maintained its key overnight borrowing rate at 3.5 percent and set the rate on Special Deposit Account facility at 3 percent to fine-tune monetary policy.
Despite an acceleration in February inflation, bank is expected to leave the key rates unchanged at its next meeting. The bank is set to announce its next monetary policy decision on March 14.
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