Inflation in the Philippines increased to 2.9% in December, up from 2.5% in November, driven by higher power rates and housing costs, according to the Philippine Statistics Authority (PSA).
This rise brought the 2024 average inflation rate to 3.2%, within the government’s target range of 2%-4%. The December inflation rate was also in line with the Bangko Sentral ng Pilipinas’ forecast of 2.3%-3.1%.
PSA Undersecretary Dennis Mapa explained that the increase was primarily due to higher housing, water, electricity, gas, and fuel costs.
Transportation costs, including boat fares, also rose during the month due to seasonal factors.
Food inflation held steady at 3.5% in December, a significant improvement from 5.5% in December 2023. For 2024, the average food inflation rate was 4.5%, lower than the 8% recorded in 2023.
