PH Inflation Sees Huge Dip in January 2024 Now at 2.8%

The country’s headline inflation has taken a significant dip, currently standing at 2.8%, according to the latest report from the Philippines Statistics Authority (PSA) released on February 6, 2024.

According to PSA, this marks the lowest rate recorded since October 2020, showing a considerable drop from December 2023’s 3.9 percent and a noteworthy decrease from January 2023’s 8.7 percent.

The report cites Food and Non-Alcoholic Beverages as the primary contributors to the inflation dip. This category, noted by the department as the major influencer, transitioned from 5.4 percent in the previous month to a more manageable 3.5 percent in January 2024.

Housing, water, electricity, gas, and other fuels also experienced a decline from 1.5 percent in December 2023 to 0.7 percent in January this year.

Various goods and services, such as alcoholic beverages and tobacco, clothing and footwear, furnishings, health, recreation, and personal care, collectively contributed to the moderation by showing lower price increases.

Transport and financial services also saw an annual decrease in prices in January 2024.

Examining overall inflation, the top three contributors were food and non-alcoholic beverages with a 47.1 percent share, restaurants and accommodation services with an 18.9 percent share, and alcoholic beverages and tobacco at a 6.5 percent share.

Food prices at the national level also saw a decline, dropping to 3.3 percent in January from 5.5% in December 2024. This shift was influenced by factors like a faster year-on-year decline in the price of vegetables and lower inflation rates in several food items.

In terms of core inflation, excluding selected food and energy items, there was a deceleration, settling at 3.8 percent in January 2024 from 4.4 percent in the previous month.

Looking at the regional scenario, both the National Capital Region (NCR) and areas outside NCR experienced a similar slowdown in inflation rates, influenced by more moderate annual increases in various goods and services.

The noticeable drop in headline inflation for the Philippines reflects various factors, including more moderate increases in the prices of everyday items. This development suggests a welcome adjustment in the country’s economic landscape in the early months of 2024. (ASC)