MANILA, PHILIPPINES — In January 2023, the inflation rate in the Philippines is at 8.7 percent, higher and faster than the 8.1 percent in December 2022, as reported by the Philippine Statistics Authority (PSA).
The January inflation rate is higher than the estimated 7.5 to 8.3 percent of the Bangko Sentral ng Pilipinas last December. The 8.7 percent rate is way above the government target range of 2 to 4 percent increase.
BPI Lead Economist Jun Neri told ANC that the February outlook is around 8.5 to 9 percent, following the faster-than-anticipated inflation last month.
“The rate of deceleration might be a little slower than anticipated, which will affect consumer confidence and overall growth could be affected by inflation affecting consumer confidence,” Neri said.
In the data provided by the PSA, compared to the 7 percent in December 2022, an 8.7 percent inflation was recorded in January for housing, water, electricity, gas, and other fuels.
The 10.7 percent inflation rate for food and non-alcoholic beverages is also a major contributor to January’s high inflation rate.
In the case of food prices, inflation rose to 11.2 percent in January compared to December’s 10.6 percent. The higher inflation rate is attributed to the rise of vegetable prices at 37.8 percent, or 5 percent higher than the previous month.
According to government estimates, the inflation rate in the Philippines may average at 4.5 percent before easing back within target range of 2 percent to 4 percent.
Back in December, Finance Secretary Benjamin Diokno said inflation is expected to slow down in 2023. – WhatALife!
Also read: PH inflation rises to 8%, highest after 14 years
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