Peso weakens on higher December inflation

On Tuesday, January 5, the Philippine peso weakened against the US dollar due to higher-than-expected December inflation.

Headline inflation rose to 3.5% in December, up from 3.3% in November and 2.5% a year earlier, according to the Philippine Statistics Authority.

The faster-than-expected inflation caused market concerns, leading to a depreciation of the peso by 4.5 centavos to close at P48.065 per dollar.