Philippine inflation slows to 2.6% in Feb

The Philippines' inflation rate decreased to 2.6 percent in February from 2.9 percent in January, within the Bangko Sentral ng Pilipinas' (BSP) forecast.

The slowdown was primarily due to slower annual increases in food and non-alcoholic beverages.

Core inflation, excluding selected food and energy items, eased to 3.2% in February from 3.3% in January.

The average inflation rate for the first two months of the year stands at 2.8 percent.

The BSP expects the full-year average inflation to hit 3 percent, with risks leaning to the upside due to potential higher utility rates, fare hikes, and the impact of African swine fever on meat prices.

The spread of Covid-19 could also adversely impact domestic economic activity and financial market sentiment.