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Advocates Philippines
Philippine Inflation Edges Up To 3.9% In May 2024
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The Philippines saw a slight uptick in its headline inflation, reaching 3.9% in May 2024, compared to 3.8% in April of the same year.
This rise contributed to the national average inflation from January to May 2024, settling at 3.5%. Despite the increase, this figure represents a decrease from May 2023's inflation rate, which stood at 6.1%.
The main drivers behind this upward trend in May 2024 were the accelerated increases in housing, water, electricity, gas, and other fuels index, which rose from 0.4% in April to 0.9%, and the transport index, climbing from 2.6% to 3.5%.
However, several commodity groups experienced a decrease in inflation rates during the same period, including food and non-alcoholic beverages, alcoholic beverages and tobacco, clothing and footwear, health, recreation, sport and culture, restaurants and accommodation services, and personal care, and miscellaneous goods and services.
In terms of contribution, food and non-alcoholic beverages remained the primary contributor to inflation, with a 56.6% share, followed by restaurants and accommodation services and transport.
Food inflation, a significant component of overall inflation, slowed down to 6.1% in May 2024 from 6.3% in April 2024. This deceleration was mainly attributed to slower increases in vegetable, tubers, plantains, cooking bananas, and pulses index, as well as rice and fish and other seafood.
Within the food inflation category, cereals and cereal products held the largest share, followed by meat and other parts of slaughtered land animals, and ready-made food and other food products not elsewhere classified.
Core inflation, excluding selected food and energy items, also experienced a slight decrease, settling at 3.1% in May 2024, compared to 3.2% in the previous month.
In the National Capital Region (NCR), inflation accelerated to 3.1% in May 2024, driven by higher annual increases in heavily-weighted food and non-alcoholic beverages and housing, water, electricity, gas, and other fuels. In contrast, lower year-on-year increases were observed in several commodity groups.
In areas outside NCR (AONCR), inflation remained steady at 4.1% in May 2024, similar to the rate recorded in April 2024. While some commodity groups experienced higher annual increases, others saw a decrease in inflation rates compared to the previous month. Notably, five regions in AONCR exhibited higher inflation rates in May 2024, with the Bangsamoro Autonomous Region in Muslim Mindanao recording the highest inflation rate for the fourth consecutive month.
Overall, while the slight increase in inflation in May 2024 indicates some economic pressure, particularly in housing and transportation costs, the situation remains relatively stable compared to the previous year.
This rise contributed to the national average inflation from January to May 2024, settling at 3.5%. Despite the increase, this figure represents a decrease from May 2023's inflation rate, which stood at 6.1%.
The main drivers behind this upward trend in May 2024 were the accelerated increases in housing, water, electricity, gas, and other fuels index, which rose from 0.4% in April to 0.9%, and the transport index, climbing from 2.6% to 3.5%.
However, several commodity groups experienced a decrease in inflation rates during the same period, including food and non-alcoholic beverages, alcoholic beverages and tobacco, clothing and footwear, health, recreation, sport and culture, restaurants and accommodation services, and personal care, and miscellaneous goods and services.
In terms of contribution, food and non-alcoholic beverages remained the primary contributor to inflation, with a 56.6% share, followed by restaurants and accommodation services and transport.
Food inflation, a significant component of overall inflation, slowed down to 6.1% in May 2024 from 6.3% in April 2024. This deceleration was mainly attributed to slower increases in vegetable, tubers, plantains, cooking bananas, and pulses index, as well as rice and fish and other seafood.
Within the food inflation category, cereals and cereal products held the largest share, followed by meat and other parts of slaughtered land animals, and ready-made food and other food products not elsewhere classified.
Core inflation, excluding selected food and energy items, also experienced a slight decrease, settling at 3.1% in May 2024, compared to 3.2% in the previous month.
In the National Capital Region (NCR), inflation accelerated to 3.1% in May 2024, driven by higher annual increases in heavily-weighted food and non-alcoholic beverages and housing, water, electricity, gas, and other fuels. In contrast, lower year-on-year increases were observed in several commodity groups.
In areas outside NCR (AONCR), inflation remained steady at 4.1% in May 2024, similar to the rate recorded in April 2024. While some commodity groups experienced higher annual increases, others saw a decrease in inflation rates compared to the previous month. Notably, five regions in AONCR exhibited higher inflation rates in May 2024, with the Bangsamoro Autonomous Region in Muslim Mindanao recording the highest inflation rate for the fourth consecutive month.
Overall, while the slight increase in inflation in May 2024 indicates some economic pressure, particularly in housing and transportation costs, the situation remains relatively stable compared to the previous year.
Jun 5, 2024
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