Central bank stands ready to take appropriate action as needed
Easing inflation driven by food, utility prices
BSP has sufficiently tightened rates economist

MANILA, Jan 5 Reuters Philippine inflation slowed to its weakest in nearly two years in December but fullyear readings remained outside the central bank39;s target zone, diminishing chances of nearterm rate cuts.

The central bank did not waver on Friday from its stance in early December that policy settings would stay sufficiently tight, underscoring concerns about inflation despite a slowdown in the pace of price gains.

The consumer price index in December rose 3.9 from a year earlier compared with 4.1 in November, the statistics agency said on Friday, the slowest since February 2022 and the third straight month that inflation has eased.

That brought the 2023 average inflation rate to 6.0, still way outside the central bank39;s 24 target.

The Monetary Board deems it necessary to keep monetary policy settings sufficiently tight until a sustained downtrend in inflation becomes evident, the Bangko Sentral ng Pilipinas BSP said in a statement following the data.

The BSP will continue to monitor inflation expectations and secondround effects and take appropriate action as needed to bring inflation back to the target, it added.

Economists in a Reuters poll had forecast annual inflation of 4.0 in December, within the central bank39;s 3.6 to 4.4 projection for the month.

Core inflation, which strips out…