The Philippines’ headline inflation increased to 8.1 percent in December 2022, from 8.0 percent in November 2022. This is the highest inflation rate reported for 2022 and the highest since November 2008. Inflation in December 2021 was lower at 3.1 percent.
The higher inflation in December 2022 than in November 2022 was primarily brought about by the faster year-on-year growth rate in the index of food and non-alcoholic beverages of 10.2 percent, from 10.0 percent in November 2022. This was followed by restaurants and accommodation services whose inflation rate accelerated to 7.0 percent, from 6.5 percent in November 2022. Came third was housing, water, electricity, gas and other fuels with inflation rate of 7.0 percent in December 2022, from 6.9 percent inflation in the previous month.
Other commodity groups that recorded higher year-on-year increments in December 2022 were the following:
a. Alcoholic beverages and tobacco, 10.7 percent;
b. Clothing and footwear, 3.9 percent;
c. Furnishings, household equipment and routine household maintenance, 4.8 percent;
d. Health, 3.1 percent;
e. Recreation, sport and culture, 3.9 percent; and
f. Personal care, and miscellaneous goods and services, 4.5 percent.
On the contrary, lower annual increase was observed in the transport index at 11.7 percent in December 2022, from 12.3 percent in November 2022. Meanwhile, inflation for information and communication (0.7%), education services (3.6%), and financial services (0.0%) remained at their previous month’s rates.
Inflation rate for December 2022 at 8.1 percent
Food inflation at the national level rose further to 10.6 percent in December 2022, from 10.3 percent in November 2022. In December 2021, food inflation was far lower at 1.6 percent.
The higher year-on-year growth rates in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 32.4 percent; rice at 3.4 percent; and fruits and nuts at 7.6 percent were the main contributors to the increase in the December 2022 food inflation. In addition, faster annual increments during the month were noted in the indices of the following food groups:
a. Flour, bread and other bakery products, pasta products, and other cereals, 10.9 percent;
b. Milk, other dairy products and eggs, 9.9 percent;
c. Sugar, confectionery and desserts, 38.8 percent; and
d. Ready-made food and other food products not elsewhere classified (n.e.c.), 9.4 percent.
Inflation in NCR, likewise, moved at a faster pace of 7.6 percent in December 2022, from 7.5 percent in November 2022. In December 2021, the inflation rate in the area was observed at 2.1 percent.
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