Philippine consumer prices in December 2012 are still lower compared to other Southeast Asian countries, according to the National Economic and Development Authority (NEDA).

NEDA Director General and Socioeconomic Planning Secretary Arsenio Balisacan said that the 2.9-percent inflation rate in December remains lower that the inflation rate of Association of Southeast Asian Nations (Asean) countries, such as Thailand with 3.6 percent and Indonesia with 4.3 percent.

He noted that inflation in December 2012 was pushed up by the faster growth in prices of food and non-alcoholic beverages, as well as alcoholic beverages and tobacco.

Moreover, core inflation declined slightly to 3.3 percent from 3.4 percent in November 2012 and 4.2 percent in December 2011.

“This brings average core inflation rate to 3.7 percent in 2012, easing the demand pressure on consumer prices,” the NEDA official stated.

He added that alcoholic beverages and tobacco prices picked up as alcohol price index increased by 4.2 percent in December 2012 from 4 percent in the previous month, while that of tobacco picked up by 6.1 percent from 6 percent in the same month.

In Metro Manila, the Cabinet official reported that headline inflation increased to 2.8 percent in December 2012 from 2.6 percent in the previous month, on the back of higher year-on-year increments in major commodity groups. Similarly, inflation outside Metro Manila also dropped from 4.9 percent in 2011 to 3.2 percent in 2012.

Balisacan also noted that inflation for 2012, which averaged 3.2 percent is well within the Development Budget Coordination Committee’s (DBCC) target of 3 percent to 5 percent.

“This is also within DBCC’s 2012 inflation forecast of 3 [percent] to 3.5 percent and still slower than the 4.6 percent full year inflation average in 2011,” he added.