The annual headline inflation rate in the Philippines further settled downward to 2.7 percent in February from 4.0 percent in January. This was primarily due to the slowdown in the annual growth rate of the heavily-weighted food and non-alcoholic beverages index. Slower annual increments in all the other commodity groups except in health and recreation and culture indices were also noted during the month. Compared to February 2011, inflation declined by two percentage points. This is the lowest rate since October 2009.

The country’s annual headline inflation went up to 5.2 percent in June from 5.0 percent in May. Higher annual increments were recorded in alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; transport; recreation and culture; education; and restaurants and miscellaneous goods and services index. Inflation a year ago was 3.6 percent.

The continued deceleration in the annual increment of the heavily weighted food and non-alcoholic beverages index further pushed down the country’s year-on-year headline inflation to 3.9 percent in January 2012 from 4.2 percent in December 2011. The slowing down of the annual growth rates of alcoholic beverages and tobacco; furnishing, household equipment and routine maintenance of the house; health; and transport indexes and the negative annual rate in communication index also contributed to the downtrend. Inflation a year ago was 4.1 percent.