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Headline Inflation In The Philippines Rises To 2.9% In December 2024: Here's What's Driving It
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In December 2024, the Philippines’ headline inflation ticked up to 2.9%, a slight jump from November’s 2.5%. To put it into perspective, it’s still a bit lower than the 3.9% we saw in December 2023. So, what's behind this latest uptick? Let’s break it down.
What’s Driving the Increase?
The biggest culprits pushing up the inflation rate last month were housing, water, electricity, gas, and other fuels. These essentials saw a faster annual increase of 2.9% in December, up from 1.9% in November. Transport also played a role, shifting from a slight decline in November to a 0.9% increase in December.
Even recreation, sports, and culture saw a modest bump, going from 2.4% to 2.5%. On the flip side, categories like clothing and footwear, health, and restaurants experienced slight decreases in their inflation rates, offering a bit of relief.
The Big Players in December's Inflation
When it comes to what contributed the most to December’s inflation, food and non-alcoholic beverages took the lead, making up 44.3% of the overall increase. Housing and utilities followed with a 21.4% share, while restaurants and accommodation services added another 12.6%.
How Does 2024 Stack Up?
Looking at the whole year, the Philippines’ average inflation rate in 2024 was 3.2%, a nice dip from 2023’s 6.0%. The downward trend was mainly thanks to more moderate increases in food and utilities.
A Closer Look at Food Inflation
Food inflation stayed steady at 3.5% in December 2024, much lower than the 5.5% a year ago. Veggies, meat, and cereals were the top contributors to food inflation last month.
What About Core Inflation?
Core inflation, which strips out the more volatile food and energy prices, edged up to 2.8% in December from 2.5% in November. Still, that’s a significant drop from 4.4% in December 2023.
Regional Trends
In the National Capital Region (NCR), inflation climbed to 3.1% in December, with housing and food leading the charge. Outside NCR, inflation also rose to 2.9%, with transport and utilities driving the increase.
Wrapping It Up
While the headline inflation rate nudged upward in December 2024, the overall trend for the year points to a more stable economic environment compared to 2023. As we step into 2025, keeping an eye on these trends will help us better understand and navigate our financial landscapes.
What’s Driving the Increase?
The biggest culprits pushing up the inflation rate last month were housing, water, electricity, gas, and other fuels. These essentials saw a faster annual increase of 2.9% in December, up from 1.9% in November. Transport also played a role, shifting from a slight decline in November to a 0.9% increase in December.
Even recreation, sports, and culture saw a modest bump, going from 2.4% to 2.5%. On the flip side, categories like clothing and footwear, health, and restaurants experienced slight decreases in their inflation rates, offering a bit of relief.
The Big Players in December's Inflation
When it comes to what contributed the most to December’s inflation, food and non-alcoholic beverages took the lead, making up 44.3% of the overall increase. Housing and utilities followed with a 21.4% share, while restaurants and accommodation services added another 12.6%.
How Does 2024 Stack Up?
Looking at the whole year, the Philippines’ average inflation rate in 2024 was 3.2%, a nice dip from 2023’s 6.0%. The downward trend was mainly thanks to more moderate increases in food and utilities.
A Closer Look at Food Inflation
Food inflation stayed steady at 3.5% in December 2024, much lower than the 5.5% a year ago. Veggies, meat, and cereals were the top contributors to food inflation last month.
What About Core Inflation?
Core inflation, which strips out the more volatile food and energy prices, edged up to 2.8% in December from 2.5% in November. Still, that’s a significant drop from 4.4% in December 2023.
Regional Trends
In the National Capital Region (NCR), inflation climbed to 3.1% in December, with housing and food leading the charge. Outside NCR, inflation also rose to 2.9%, with transport and utilities driving the increase.
Wrapping It Up
While the headline inflation rate nudged upward in December 2024, the overall trend for the year points to a more stable economic environment compared to 2023. As we step into 2025, keeping an eye on these trends will help us better understand and navigate our financial landscapes.
Jan 7, 2025
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