MANILA, Jan. 18 (Xinhua) -- The full-year average inflation in the Philippines for 2018 settled at 5.2 percent after the average inflation eases during the fourth quarter, the Philippine central bank said on Friday.
The Bangko Sentral ng Pilipinas (BSP) said that year-on-year headline inflation moderated to an average of 5.9 percent in the fourth quarter of 2018 from the quarter-ago average of 6.2 percent.
"This brought the full-year average inflation rate to 5.2 percent, which is above the national government's (NG) target range of 3.0 percent plus or minus 1.0 percentage point for the year," the BSP said in a statement.
The BSP added that food inflation moderated during the review quarter as supply conditions improved for key food items.
Meanwhile, the BSP said non-food inflation also eased in the fourth quarter of 2018, as lower international oil prices exerted downward pressure on transport inflation through lower gasoline and diesel prices.
By contrast, the BSP said core inflation rose to 4.9 percent in the fourth quarter of 2018, higher than the rates posted in the previous quarter and a year ago.
Similarly, the BSP's three alternative measures for core inflation were higher during the quarter.
Moreover, the BSP said inflation momentum continued to slow down in December as both food and non-food inflation eased, giving the BSP some latitude to allow its monetary policy adjustments throughout 2018 to work their way through the economy.
"The BSP reiterates that it remains vigilant against developments that could affect the outlook for inflation and financial stability," BSP Assistant Governor Francisco Dakila said in a news conference.
He added: "The BSP reassures the public of its strong commitment to take further policy action as appropriate to safeguard its price stability mandate."
