1. Philippines

Headline inflation in the Philippines continued its uptrend as it accelerated further to 8.7 percent in January 2023, from 8.1 percent in December 2022. The January 2023 inflation is the highest annual rate recorded since November 2008. ln January 2022, inflation was lower at 3.0 percent.

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 percenl, from 10.2 percent in Deccmber 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.

2. Cordillera Administrative Region (CAR)

lnflation in the region continued its uptrend as it accelerated further to 7.9 percent in January 2023, from 7.7 percent in December 2022. ln January 2022, inflation was lower at 4.2 percent.

Higher year-on-year increase in the index of food and non-alcoholic beverages at 11.4 percent from 10.2 percent in December 2022 was the main driver in the uptrend of inflation in January 2023. This was followed by clothing and footwear at 4.4 percent, from 3.7 percent in December 2022. Also contributed to the increase in inflation was personal care, miscellaneous goods and services at 4.9 percent in January 2023, lrom 4.5 percent in December 2022.

3. Baguio City

Similar to the trend of the inflation at the national and regional level, inflation in Baguio City further increased to 7.1 percent in January 2023, from 6.5 percent in December 2022. ln January 2022, inllalion was higher at 3.4 percent. (Table B and Figure 2)

The main driver in the uptrend of inflation in January 2023 was the higher year-on-year increase in the index of food and non-alcoholic beverages at 15.8 percent, from 13.4 percent in December 2022. This was followed by clothing and foolwear at 0.6 percent, from 0.0 percent in December 2022. Also contributed to the decrease in inflation was recreation, sports and culture with an inflation rate of 3.2 percent in January 2023, from 2.5 percent in December 2022.

Relative to their annual rates in the previous month, increases were also observed in the indices of the following commodity groups:

a. Alcoholic beverages and tobacco, 10.2 percent;
b. Furnishings, household equipment and routine household maintenance, 1.0 percent;
c. Restaurants and accommodation services, 0.5 percent;
d. Personal care, and miscellaneous goods and services, 5.5 percent;

On the contrary, decreases were observed in the index of the following:

a. Housing, water, electricity, gas and other fuels, 2.2 percent;
b. Health, 2.3 percent; and
c. Transport, 15.9 percent.

Meanwhile, the indices of information and communication, education services and financial services remained at their previous month's annual rates of 0.5, 0.0 percent and 0.0 percent, respectively. (Table 3)

Food inflation at the provincial level increased to 16.6 percent in January 2023, from 13.9 percent in December 2022. ln January 2022,lood inflation stood at 7.5 percent. (Table 5,9)

The higher food inflation was mainly brought about by the increased yearon-year growth in the index of vegetables, tubers, plantains, cooking bananas and pulses at 72.1 percent in January 2023, trom 53.2 percent in December 2022. Moreover, higher annual mark-ups were observed in the indices of the following food groups during the month:

a. Flour, bread and other bakery products, pasta products, and other cereals, 11.1 percent;
b. Meat and other slaughtered land animals, 3.5 percent;
c. Fish and other seafoods, 7.8 percent;
d. Milk and other dairy products and eggs, 14.3 percent; and
e. Oils and fats, 9.5 percent.

Meanwhile, lower annual growth rates were observed in the indices of the following food groups in January 2023:

a. Rice,7.1 percent;
b. Corn, 39.8 percent;
c. Fruits and nuts, 12.7 percent; and
d. Sugar, confectionery and desserts, 29.3 percent; and
e. Ready-made food and other food products not elsewhere classified, 6.9 percent.
 

Note: CPls and inflation rates by region, province and selected city are posted at the PSA website (https://openstat.psa_gov.ph/).

IMELDA L. BUYUCCAN
Chief Statistical Specialist