The Philippines’ headline inflation or overall inflation increased further to 6.1 percent in September 2023 from 5.3 percent in August 2023.
This makes the national average inflation from January to September 2023 to remain at 6.6 percent. In September 2022, inflation rate was higher at 6.9 percent.
The uptrend in the overall inflation in September 2023 was primarily brought about by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 9.7 percent during the month from 8.1 percent in the previous month. Transport, with inflation rate of 1.2 percent during the month from 0.2 percent in the previous month, also contributed to the uptrend of the headline inflation.
In addition, higher annual increases were noted in the indices of the following commodity groups during the month:
a. Health with 4.1 percent inflation from 3.9 percent;
b. Recreation, sport and culture, 5.1 percent from 4.9 percent; and
c. Education services, 3.6 percent from 2.9 percent.
In contrast, the following commodity groups showed lower inflation rates during the month:
a. Alcoholic beverages and tobacco, 9.8 percent from 10.1 percent;
b. Clothing and footwear, 4.7 percent from 4.8 percent;
c. Housing, water, electricity, gas and other fuels, 2.4 percent from 2.5 percent;
d. Furnishings, household equipment and routine household maintenance, 5.4 percent from 5.6 percent;
e. Information and communication, 0.6 percent from 0.7 percent; and
f. Personal care, and miscellaneous goods and services, 5.4 percent from 5.5 percent.
PH inflation rate now at 6.1 percent – PSA
Restaurant and accommodation services retained its previous month’s annual increase, while financial services remained at zero percent annual rate during the month.
The top three commodity groups contributing to the September 2023 overall inflation were the following:
a. Food and non-alcoholic beverages with 61.0 percent share or 3.7 percentage points;
b. Restaurants and accommodation services with 11.4 percent share or 0.7 percentage point; and
c. Housing, water, electricity, gas and other fuels with 8.6 percent share or 0.5 percentage point.
Food inflation at the national level rose to 10.0 percent in September 2023 from 8.2 percent in the previous month. In September 2022, food inflation was lower at 7.7 percent.
The acceleration of food inflation in September 2023 was mainly brought about by the higher inflation for rice with a double-digit inflation rate of 17.9 percent during the month from 8.7 percent in August 2023. This was followed by meat and other parts of slaughtered land animals with an inflation rate of 1.3 percent during the month from a -0.1 percent inflation rate in August 2023.