Inflation in December of last year is seen to have moderated to 3.2%, down from the previous month’s 3.3%, on the back of more stable food prices and lower power costs.
DOF View
Low inflation is an indication that the country’s macroeconomic fundamentals remain strong. Solid fundamentals backed by TRAIN 1 implementation, rice sector reform and the Build, build, build policy will push the country’s growth to 7-8% this year and sustain manageable inflation.