The Philippines’ headline inflation or overall inflation eased to 4.9 percent in October 2023 from 6.1 percent in September 2023. This makes the national average inflation from January to October 2023 at 6.4 percent. In October 2022, inflation rate was higher at 7.7 percent.
The downtrend in the overall inflation in October 2023 was primarily brought about by the slower year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 7.0 percent in October 2023 from 9.7 percent in the previous month. The restaurants and accommodation services, with an inflation rate of 6.3 percent during the month from 7.1 percent in September 2023, also contributed to the downtrend of the headline inflation.
In addition, slower annual increases were noted in the indices of the following commodity groups during the month:
a. Alcoholic beverages and tobacco, 9.3 percent inflation from 9.8 percent;
b. Furnishings, household equipment and routine household maintenance, 5.3 percent from 5.4 percent;
c. Health, 4.0 percent from 4.1 percent;
d. Transport, 1.0 percent from 1.2 percent;
e. Recreation, sport and culture, 5.0 percent from 5.1 percent; and
f. Personal care, and miscellaneous goods and services, 5.3 percent from 5.4 percent.
In contrast, the following commodity groups registered higher inflation rates during the month:
a. Clothing and footwear, 4.8 percent from 4.7 percent;
b. Housing, water, electricity, gas and other fuels, 2.6 percent from 2.4 percent; and
c. Information and communication, 0.8 percent from 0.6 percent.
Inflation eases to 4.9 percent in October
Education services retained its previous month’s annual increase, while financial services index remained at zero percent annual rate during the month.
The top three commodity groups that contributed to the October 2023 overall inflation were the following:
a. Food and non-alcoholic beverages with 53.7 percent share or 2.6 percentage points;
b. Restaurants and accommodation services with 12.3 percent share or 0.6 percentage point; and
c. Housing, water, electricity, gas and other fuels with 11.3 percent share or 0.6 percentage point.
Food inflation at the national level slowed down to 7.1 percent in October 2023 from 10.0 percent in the previous month. In October 2022, food inflation was higher at 9.8 percent.
The deceleration of food inflation in October 2023 was primarily influenced by the lower annual growth of vegetables, tubers, plantains, cooking bananas and pulses at 11.9 percent during the month from 29.6 percent in September 2023. This was followed by rice with an inflation rate of 13.2 percent in October 2023 from 17.9 percent September 2023.