Inflation Moderates in December
The headline inflation decreased to 3.0% YoY in December, down from +3.6% in November, contributed by slower increases in prices of raw food products, housing & utilities and clothing. Going forward, we expect headline inflation to pick up slightly to 3.8% in 2016, from +3.5% in 2016, on:
1. Planned electricity tariff hike;
2. Modest pick-up in volatile food prices.