Inflation eases for 3 months
Marcos said his administration will increase food production and agriculture after inflation eased in December.
Daily TribuneMarcos said his administration will increase food production and agriculture after inflation eased in December.
(Photo: JAM STA ROSA / AFP)
President Ferdinand Marcos Jr. on Friday said the administration would continue to strengthen the economy as inflation slowed for the third month in December.
According to the Philippine Statistics Authority (PSA), inflation eased from 4.1 percent in November to 3.9 percent year-on-year in December 2023 due to slower price increases for some essential food items and energy costs.
The latest reading fell within the Bangko Sentral ng Pilipinas' forecast range of 3.6 percent to 4.4 percent for last month. It was also the slowest price increase since February 2022.
Core inflation fell to 4.4 percent in December, less than the previous month's rate of 4.7 percent and a lot less than the 6.9 percent rate in December 2022.
"I am happy to report that the government's efforts to bring down inflation are bearing fruit," Marcos said in a social media post.
He credited the decline to "a combination of factors, including lower food prices, the strengthening of the peso, and targeted government interventions."
In a separate briefing on Friday, National Statistician Dennis Mapa said the primary reason for December's lower rate was lower inflation in housing, water, electricity, gas, and other fuels (from 2.5 percent in November to 1.5 percent in December), as well as lower inflation in food and non-alcoholic drinks (from 5.7 percent in November to 5.4 percent in December).
He credited the decline to 'a combination of factors, including lower food prices, the strengthening of the peso, and targeted government interventions.'
"The slower price increases of the following items also contributed to the decrease in inflation for food and non-alcoholic beverages: meat and other slaughtered land animals with a 0.2 percent inflation rate, particularly chicken meat, and coffee and coffee substitutes with a 3.6 percent inflation rate," Mapa said.
Even though inflation slowed in December, it averaged 6 percent in 2023, higher than the government's goal range of 2 percent to 4 percent.
Rice inflation still up
However, the inflation rate for rice increased in December, reaching 19.6 percent from 15.8 percent in November 2023. Since rice inflation peaked in March 2009 at 22.9 percent, this was the fastest inflation rate.
Mapa said that Filipino consumers spent an average of P9 to P10 more per kilo of rice last month, a huge increase compared to prices estimated in December 2022.
He said the average price of regular-milled rice per kilo reached P48.50 in December 2023 from P39.63 in December 2022.
The average price of well-milled rice per kilo, on the other hand, reached P53.82 last month from P43.98 the previous year.
Mapa added that the average price of special rice per kilo hit P63.08 in December 2023 from P53.83 in 2022.
He said the increases were between ₱9 and over ₱10.
However, Mapa did not mention the cause of the recent rise in rice prices.
Improving food production, agriculture
Marcos said his administration will increase food production and agriculture after inflation eased in December.
"For the new year, we will strengthen programs for agriculture and focus on measures to keep the prices of food and other essential goods affordable," he said.
Following reports of price increases by the government, the President said in August 2023 that rice was the nation's "most critical problem."
Then, in September, the Chief Executive implemented a one-month price cap on rice due to concerns about supply and prices.
Before this, Marcos attributed the high prices to hoarders and smugglers as well as the actions of other Asian nations to increase their rice stocks.
