Inflation Likely Slowed in February, Economists Say

Headline inflation likely eased in February from 2.9 percent in January as rice and fuel prices declined, offsetting price pressures from other food items, economists said.

- By KEISHA TA-ASAN

Aris Dacanay, economist for ASEAN at HSBC, said lower rice prices and favorable base effects are the main drivers of the expected slowdown in inflation, which is expected to hit 2.6 percent in February.

"Not only were there favorable base effects on rice, but rice prices fell on a month-on-month basis," Dacanay said. The decline in retail fuel prices, amid falling global oil prices, also contributed to the easing of inflationary pressures.