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 percenl 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,lrom 7.0 percent in December 2022.

2. Cordillera Administrative Region (CAR)

lnflation in the region continued its uptrend as it accelerated further to 7.g percent in January 2023, from 7.7 percent in December 2022. ln January 2022, inflalion was lower at 4.2 percent.

Higher year-on-year increase in the index of food and non-alcoholic beverages al 11 .4 percent from 10.2 percent in December 2022 was lhe 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. Benguet

Contrary to the trend of the inflation at the national and regional level, inflation in Benguet decreased to 6.9 percent in January 2023, lrom 7.7 percent in December 2022. ln January 2022, inflalion was higher at 0.2 percent. (Table B and Figure 2)

The main driver in the downtrend of inflation in January 2023 was the lower year-on-year increase in the index of food and non-alcoholic beverages at 10.6 percent, from 11.8 percent in December 2022. fhis was followed by transport at 14.6 percent, from '16.5 percent in December 2022. Also contributed to the decrease in inflation was housing, water, electricity, gas and otherfuels with an inflation rale ot2.2 percent in January 2023,from2.9 percent in December 2022.

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

a. Alcoholic beverages and tobacco, 8.3 percent;
b. Health, 4.3 percent;
c. lnformation and Communication, -0.2 percent; and
d. Recreation, sport and culture, 5.0 percent.

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

a. Clothing and footwear, 5.5 percent;
b. Furnishings, household equipment and routine household maintenance, 4.7 percent; and
c. Restaurants and accommodation services, 4.7 percent.

Meanwhile, the indices of education services and flnancial services remained at their previous month's annual rates of 0.8 percent and 0.0 percent, respectively. (Table 3)

Food inflation at the provincial level decreased to 10.9 percent in January 2023, lrom 12.3 percent in December 2022. ln January 2022, tood inflation stood at 7.5 percent. (Table 5,9)

The lower food inflation was mainly brought about by the decreased yearon-year growth in the index of meat and other parts of slaughtered land animals at 0.9 percent in January 2023,from 5.7 percent in December 2022. Moreover, lower annual mark-ups were observed in the indices of the following food groups during the month:

a. Rice, 6.0 percent;
b. Corn, 1. percent;
c. Fish and other seafoods, 4.6 percent;
d. Oils and fats, 17.4 percent;
e. Fruits and nuts, 6.2 percent; and
f. Sugar, confectionery and desserts.

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

a. Flour, bread and other bakery products, pasta products, and other cereals, 5.7 percent;
b. Milk and other dairy products and eggs, 11.6 percent;
c. Vegetables, tubers, plantains, cooking bananas and pulses, 39.4 percent; and
d. Ready-made food and other food products not elsewhere classified, 5.4 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