Philippine Inflation Rises Slightly in December 2024

The country’s inflation rate rose to 2.9% in December 2024, up from 2.5% in November. This was lower compared to December 2023, when it stood at 3.9%.

Factors Behind the Increase

Higher costs for housing, water, electricity, gas, and other fuels contributed significantly to the December inflation. These costs rose by 2.9%, compared to 1.9% in November. Transportation costs also increased by 0.9%, reversing a 1.2% drop in the previous month.

Recreation, sports, and culture also saw a slight rise, with a 2.5% increase compared to 2.4% in November.

However, some items had lower inflation rates, including clothing and footwear (2.4% from 2.6%), health (2.5% from 2.6%), and restaurant services (3.8% from 3.9%).

Top Contributors to December Inflation

Food and Non-Alcoholic Beverages: Accounted for 44.3% of the inflation, adding 1.3 percentage points.
Housing and Utilities: Contributed 21.4%, adding 0.6 percentage points.

Restaurant Services: Made up 12.6%, adding 0.4 percentage points.

2024 Annual Inflation Rate

The average inflation rate for 2024 was 3.2%, a drop from 6.0% in 2023. This decline was mainly due to slower price increases in food, drinks, and utilities.

National Capital Region (NCR) Inflation

In NCR, inflation rose to 3.1% in December from 2.2% in November. Housing and utilities, along with food and beverages, were the biggest contributors.

Inflation Outside NCR

Inflation in areas outside NCR reached 2.9% in December, up from 2.6% in November. Region II (Cagayan Valley) had the highest inflation at 4.6%, while Region XII (SOCCSKSARGEN) recorded the lowest at 1.2%.

The annual inflation rate outside NCR averaged 3.4% in 2024, down from 5.9% in 2023.

Food Inflation

Food inflation remained steady at 3.5% in December, lower than the 5.5% recorded in December 2023. Vegetables, meat, and cereals were the main contributors to food inflation. (ASC)