December inflation surprises at 1.6%, the highest in almost a year
Headline inflation rose to 1.6% YoY in December (Nov: 1.4%), exceeding both our forecast and market consensus of 1.4%
- For 2025, inflation averaged 1.4% YoY (2024: 1.8%; KIBB: 1.4%), well below its 10-year average of 1.8%, reflecting softer housing (1.6%; 2024: 3.0%), transport (0.5%; 2024: 0.9%), and communication (-4.2%; 2024: -1.5%).
- Core inflation edged up to a 26-month high of 2.3% in December (Nov: 2.2%), driven mainly by base effects. The fullyear core rate rose to 2.0% from 1.8% in 2024.
- 4Q25 inflation increased marginally to 1.4% (3Q25: 1.3%), largely due to higher prices for alcohol and tobacco.
- On a monthly basis, headline CPI rose by 0.3% (Nov: 0.0%), the fastest pace in ten months, as food prices accelerated.
Download Full Content:
