MANILA (Reuters) -Philippine annual inflation quickened for a third straight month in December due to the faster pace of increases in food and utility costs, the statistics agency said on Tuesday.

The consumer price index (CPI) rose 2.9% in December, higher than the 2.6% forecast in a Reuters poll, and was above the previous month’s 2.5% rate.

December’s inflation print brought average inflation in 2024 to 3.2%, well within the central bank’s 2%-4% target for the year, marking the first time since 2021 that the Philippines has achieved its inflation goal.

“On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP’s shift toward less restrictive monetary policy,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.

Core inflation, which excludes volatile food and energy items, was 2.8% in December, accelerating from 2.5% in November.

Last month, the Bangko Sentral ng Pilipinas (BSP) reduced its key interest rate by 25 basis points to 5.75%, the third consecutive cut, and flagged that further easing this year might come in “baby steps” as inflation remained a concern.

A strong majority in a Reuters poll of 24 economists in December predicted an additional 25-basis point cut every quarter over the next nine months, bringing the rate to 5.00% by the end of September 2025.

“Looking ahead, the Monetary Board will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment,” the BSP said.