Philippine inflation eases to 2.9% in January

Philippine inflation eased to 2.9% in January from December's revised 3.1%, driven by lower electricity rates and reduced rice tariffs.

The National Economic and Development Authority is addressing food inflation through interventions to mitigate La Niña impacts and ramp up ASF vaccinations.

BSP expects further disinflation due to negative base effects and tariff reductions, but notes upside risks like transport fare and electricity rate adjustments.

Analysts predict the Monetary Board will cut rates at its first policy review of 2024 next week, citing room for monetary easing within the inflation target band.