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TO THE MOON? PH Inflation Rate Reaches 8.7% for January 2023, Highest Since 2008

The country’s inflation is at its highest ever since 2008 but the BSP is confident the levels will decrease by 2024.

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  • The Philippine Statistics Authority (PSA) reported that the headline inflation rate in the Philippines has accelerated to 8.7% in January 2023, higher than December 2022’s 8.1%. This is the highest annual rate recorded since November 2008.
  • The main drivers of the inflation increase were higher year-on-year increases in the indices of housing, water, electricity, gas, and other fuels and food and non-alcoholic beverages. In addition, the indices of several commodity groups, such as furnishings, household equipment, and routine household maintenance, health, and personal care, also showed increases.
  • The inflation rate in the National Capital Region increased further to 8.6% in January 2023, while inflation in areas outside the NCR also increased to 8.7%. The Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla emphasized that the country’s inflation is expected to be below 4% by the second half of the year and below 2% by early 2024.

The headline inflation rate in the Philippines has accelerated to 8.7 percent in January 2023, higher than December 2022’s 8.1%, the Philippine Statistics Authority (PSA) reported. This is the highest annual rate recorded since November 2008.

“The main driver in the uptrend of inflation in January 2023 was the higher year-on-year increase in the index of housing, water, electricity, gas, and other fuels at 8.5 percent, from 7.0 percent in December 2022.  This was followed by food and non-alcoholic beverages at 10.7 percent, from 10.2 percent in December 2022. Also contributed to the increase in inflation was restaurants and accommodation services with an inflation rate of 7.6 percent in January 2023, from 7.0 percent in December 2022,” the PSA explained.

Photo for the Article - TO THE MOON? PH Inflation Rate Reaches 8.7% for January 2023, Highest Since 2008

For the food sector, where the inflation is most commonly felt, the food inflation at the national level is at 11.2%, which is also higher compared to December 2022’s 10.6%. January 2023’s 11.2% is also way higher compared to January 2022’s 1.6%.

The PSA also reported the indices for the following food groups for January 2023:

  • Flour, bread, and other bakery products, pasta products, and other cereals, 11.3% (increased)
  • Fish and other seafood, 6.7% (increased)
  • Milk, other dairy products, and eggs, 11.3% (increased)
  • Fruits and nuts, 9.8% (increased)
  • Rice, 2.7% (decreased)
  •  Corn, 16.0 % (decreased)
  • Meat and other parts of slaughtered land animals, 7.0% (decreased)
  • Oils and fats, 18.5% (decreased)
  • Ready-made food and other food products not elsewhere classified, 9.2% (decreased)
  • Sugar, confectionery, and desserts, 38.8& (did not change)

Note: Increased, decreased, or did not change compared to December 2022’s inflation rate of each food group

In addition, the PSA also revealed the indices for the following commodity groups:

  • Alcoholic beverages and tobacco, 10.9% (increased)
  • Clothing and footwear, 4.4% (increased)
  • Furnishings, household equipment, and routine household maintenance, 5.2% (increased)
  • Health, 3.3% (increased)
  • Recreation, sports, and culture, 4.2% (increased)
  • Personal care, and miscellaneous goods and services, 5.0% (increased)
  • Transport, 11.2% (decreased)
  • Information and communication, 0.7% (did not change)
  • Education services, 3.6% (did not change)
  • Financial services, 0.0% (did not change)

Meanwhile, for the National Capital Region alone, inflation has increased further to 8.6% in January 2023 from 7.6 percent in December 2022. While inflation in areas outside the NCR also increased to 8.7% in January 2023, from 8.2 percent in December 2022

Earlier this year, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla emphasized that the country’s inflation is expected to be below 4% by the second half of the year and below 2% by early 2024 because month-on-month inflation is going down.

The first policy meeting of the Monetary Board, the agency responsible for making policy decisions related to the management, operation, and administration of the Central Bank, is set for February 16, 2023.

This article is published on BitPinas: TO THE MOON? PH Inflation Rate Reaches 8.7% for January 2023, Highest Since 2008

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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