President Ferdinand Marcos Jr. on Friday said that the administration would continue strengthening the economy as the country's inflation slowed down for the third month in a row in December.

According to the Philippine Statistics Authority, 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 key food items and energy costs.

The latest reading fell within the Bangko Sentral ng Pilipinas' forecast range for last month of 3.6 percent to 4.4 percent. It was also the slowest print since February 2022.

Core inflation fell to 4.4 percent in December, which was 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 Jr. 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 that the major 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).

"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, particularly chicken meat, and coffee and coffee substitutes with a 3.6 percent inflation," Mapa said.

Even though inflation slowed down in December, it still averaged 6 percent in 2023, which is 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 is the fastest rate of inflation to date.

He added 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.

Mapa said that the average price of regular-milled rice per kilo reached P48.50 in December 2023 from P39.63 last 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 last 2022.

According to him, the increases were between ₱9 and over ₱10.

However, Mapa made no mention of the cause of the recent rise in rice prices.

Marcos to improve 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," Marcos said.

Following reports of price increases by the government, Marcos said in August 2023 that rice was the nation's "most critical problem."

Then, in September, due to concerns about supply and prices, the chief executive implemented a one-month price cap on rice.

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.