Inflation heats up to 2.9% in December

Inflation rose for the third straight month in December, driven by the faster uptick in housing and transport costs, but average inflation for 2024 remained within the government's two to four percent target.

- By LOUELLA DESIDERIO

National Statistician Dennis Mapa said in a press conference yesterday that headline inflation – the rate of increase in average prices of consumer goods and services – accelerated to 2.9 percent in December from November's 2.5 percent. Last month's inflation print, however, was lower than the 3.9 percent posted in December 2023.

The December inflation print is also within the 2.3 to 3.1 percent forecast range of the Bangko Sentral ng Pilipinas (BSP) for the month.

Mapa attributed the uptrend in December inflation mainly to the faster increase in housing, water, electricity, gas and other fuels at 2.9 percent during the month from 1.9 percent in November.

Also cited as a main driver to the higher inflation in December was the transport commodity group, which posted a 0.9-percent increase during the month from a 1.2-percent decline in November.

Inflation for food and non-alcoholic beverages, which typically drives the uptrend in overall inflation, remained at 3.4 percent in December from the previous month.

From 5.1 percent in November, rice inflation slowed to 0.8 percent in December, the lowest level since January 2022.

For full-year 2024, inflation averaged 3.2 percent, lower than the six percent average in 2023. It was also within the government's two to four percent target range.