A customer buys fresh produce at the public market in Marikina. Inflation is seen to ease to the central bank’s 2-4% target range as early as September. — PHILIPPINE STAR/ WALTER BOLLOZOS

MANILA – Philippine annual inflation was 2.9% in January, matching the previous month’s rate, the statistics agency said on Wednesday.

The increase in the consumer price index in January, which was above the median forecast of a 2.7% rise in a Reuters poll, was due to increased prices of food and drinks, and higher housing and utility costs, the agency said.

Core inflation, which strips out volatile food and energy prices, slowed to an annual 2.6% in January from 2.8% in December.

On Saturday, Bangko Sentral ng Pilipinas Governor Eli Remolona said the central bank could cut its key policy rate by at least 50 basis points (bps) this year, with a 25 bps cut possible as soon as its Feb. 13 meeting.

Remolona said a reduction in interest rates would support the economy, which grew a slower-than-expected 5.2% in annual terms in the last quarter of 2024. — Reuters

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