In December, consumer price inflation in the Philippines increased at a rate surpassing expectations, reaching a four-month high, according to the data released by the Philippine Statistical Authority. The Consumer Price Index (CPI) rose 2.9% year-on-year, compared to a 2.5% increase in November. Economists had projected a more modest rise to 2.6%.
Despite this acceleration, inflation remained within the central bank's target range of 2% to 4%. Core inflation, which excludes specific volatile items like food and energy, increased to 3.0% from 2.8%.
The annual increase in utility costs accelerated to 2.9% from 1.9%, while the decline in transportation costs lessened, going from a 1.2% decrease to 0.9%, contributing to the higher inflation. Conversely, clothing and footwear prices rose at a slower rate, increasing by 2.4% annually compared to a 2.6% rise in November.
For the entire year of 2024, data indicates an average inflation rate of 3.2%, a notable decrease from the 6.0% average in 2023.
In separate reports, the industrial production value showed a 3.9% year-over-year decline in November, reversing a 0.3% increase in October. This decrease was significantly influenced by sluggish growth in the food production sector, which posted a mere 1.5% growth in November, following a 7.1% surge in the prior month.
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