Consumer prices were much more sticky; annualised CPIX inflation on balance accelerated from 11,5 per cent in the first quarter of 2002 to 14,5 per cent in the final quarter. By January 2003, however, the month-to-month rate of CPIX inflation reflected some moderation flowing through from some of the slowdown in production prices; it receded to an annualised rate of 6,0 per cent.
While you have heard me say that the BSP will not necessarily move in sync with the Fed and that our courses of action remain data dependent, we must be mindful of heightened volatility in the FX market during this transition to Fed normalization. We also need to be watchful of changes in global growth and inflation dynamics.