January inflation will likely stay unchanged from the previous month given steady food and non-food prices, the Finance department said on Tuesday.

“Good economic growth maintains stable prices and in turn, provides stimulus for further growth,” the department said in an economic bulletin issued ahead of next week’s release of official inflation data.

“This virtuous cycle tempers adverse external pressures arising from petroleum and transport inflation,” it added.

Price rises for food and non-food items were said to have stayed at 3.5 percent and 2.9 percent, respectively, in January while transport price growth accelerated to 3.1 percent from 2.4 percent.

Inflation also stayed unchanged in December from November, when it slowed from 3.5 percent in the previous month.

Consumer price growth in January last year, meanwhile, was lower at 2.7 percent.

In the bulletin, the Finance department said that higher transport inflation was offset by declines in housing, utilities and fuels (3.5 percent from 3.8 percent); clothing and footwear (1.6 percent from 1.8 percent); and recreation and culture (1.4 percent from 1.5 percent).

It noted that Manila Electric Co.’s per kilowatt-hour rate for households consuming 200 kWh per month decreased to P8.72 in January from P9.25 a month ago.

The price of diesel, however, rose to P39.13 per liter from P36.20 while gasoline prices increased to P50.48 per liter from P48.12 in Metro Manila.

December’s 3.3 percent result brought full-year inflation to 3.2 percent, within the target range of 2.0-4.0 percent.

Economic managers have kept the inflation target at 2.0-4.0 percent for the next three years, reckoning that the rise in consumer prices will remain manageable over the period.