Table A. Year-on-Year Inflation Rates, All Items
In Percent
(2018=100)

A. Philippines                           

1. Headline Inflation

The Philippines’ headline inflation or overall inflation increased to 2.9 percent in December 2024 from 2.5 percent in November 2024. In December 2023, the inflation rate was higher at 3.9 percent. (Figure 1, and Tables A, B, 5, 6, and 14)

1.1 Main Drivers to the Upward Trend of the December 2024 Headline Inflation

The uptrend in the overall inflation in December 2024 was primarily influenced by the faster annual increment in the index of housing, water, electricity, gas and other fuels at 2.9 percent during the month from 1.9 percent in the previous month. The annual increase of transport at 0.9 percent during the month from an annual decline of 1.2 percent in November 2024 also contributed to the uptrend.

Recreation, sport and culture also contributed to the uptrend as it recorded a faster annual increase of 2.5 percent in December 2024 from 2.4 percent in the previous month.

In contrast, the following commodity groups registered lower inflation rates during the month:

          a. Clothing and footwear, 2.4 percent from 2.6 percent; 
          b. Health, 2.5 percent from 2.6 percent; and
          c. Restaurants and accommodation services, 3.8 percent from 3.9 percent.

The indices of the rest of the commodity groups retained their respective previous month’s inflation rates in December 2024. (Tables 5 and 6)

1.2 Main Contributors to the December 2024 Headline Inflation

The top three commodity groups contributing to the December 2024 overall inflation were the following:

          a. Food and non-alcoholic beverages with 44.3 percent share or 1.3 percentage points; 
          b. Housing, water, electricity, gas and other fuels with 21.4 percent share or 0.6 percentage point; and 
          c. Restaurants and accommodation services with 12.6 percent share or 0.4 percentage point.

2. Annual Average Inflation

The Philippines’ annual average inflation rate for 2024 stood at 3.2 percent, which was lower than the 2023 annual average inflation rate of 6.0 percent. (Tables A, B, 5, 6A, and 14)

2.1 Main Drivers to the Downward Trend of the 2024 Annual Average Inflation

The downtrend in the 2024 annual average inflation at the national level was primarily caused by the lower annual average increase in the index of food and non-alcoholic beverages at 4.4 percent in 2024 from 7.9 percent annual average inflation in 2023. Also contributed to the downtrend was the lower annual average inflation of housing, water, electricity, gas and other fuels at 1.7 percent in 2024 from 4.9 percent annual average inflation in 2023.

Except for education services, the indices of the rest of the commodity groups recorded downtrend in their annual average inflation in 2024 compared with 2023, with the financial services recording an average annual decline of 0.6 percent in 2024 from a zero percent annual average inflation in 2023. Higher annual average increase was observed in the index of education services at 4.3 percent in 2024 from 3.6 percent in 2023. (Tables 5 and 6A) 

2.2 Main Contributors to the 2024 Annual Average Inflation

The top three commodity groups contributing to the 2024 annual average inflation were the following:

          a. Food and non-alcoholic beverages with 51.6 percent share or 1.7 percentage points;  
          b. Restaurants and accommodation services with 14.3 percent share or 0.5 percentage point; and
          c. Housing, water, electricity, gas and other fuels with 11.3 percent share or 0.4 percentage point.

3. Food Inflation

Food inflation at the national level remained at 3.5 percent in December 2024. In December 2023, food inflation was higher at 5.5 percent. (Table 9)

3.1 Main Contributors to the Food Inflation

Food inflation shared 41.9 percent or 1.2 percentage points to the overall inflation in December 2024. The top three food groups in terms of contribution to the food inflation during the month were the following:

          a. Vegetables, tubers, plantains, cooking bananas and pulses with a share of 34.5 percent or 1.2 percentage points;
          b. Meat and other parts of slaughtered land animals with a share of 27.4 percent or 1.0 percentage point; and
          c. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with a share of 13.9 percent or 0.5 percentage point.

3.2 Annual Average Food Inflation

In 2024, the annual average food inflation rate was observed at 4.5 percent, lower than the recorded annual average food inflation rate of 8.0 percent in 2023. (Table 9)

4. Core Inflation

Core inflation, which excludes selected food and energy items, increased to 2.8 percent in December 2024 from 2.5 percent in November 2024. In December 2023, core inflation rate was faster at 4.4 percent. The average core inflation rate in 2024 stood at 3.0 percent, lower than the recorded average core inflation rate of 6.6 percent in 2023. (Tables A, 11, and 17)
 

B. National Capital Region (NCR)

Similarly, inflation in NCR moved at a faster pace in December 2024 at 3.1 percent from 2.2 percent in the previous month. In December 2023, inflation rate in the area was recorded at 3.5 percent. (Tables A, 5, 6, and 15)

The main driver to the increase in the inflation rate in the region was the higher annual increment in the index of housing, water, electricity, gas and other fuels at 3.0 percent in December 2024 from 1.5 percent in November 2024. Also contributed to the uptrend of inflation in the area were the faster year-on-year increase in the index of food and non-alcoholic beverages at 5.4 percent in December 2024 from 4.3 percent in the previous month.

In addition, slower annual decline was observed in the transport index at 0.2 percent in December 2024 from the year-on-year decrease of 1.8 percent in the previous month. The alcoholic beverages and tobacco index also contributed to the uptrend of inflation in NCR with a faster inflation rate of 2.8 percent in December 2024 from 2.5 percent in November 2024.

On the contrary, lower year-on-year growth rates were noted in the indices of the following commodity groups during the month:

          a. Clothing and footwear, 1.6 percent from 1.7 percent;
          b. Furnishings, household equipment and routine household maintenance, 0.9 percent from 1.1 percent; 
          c. Health, 2.0 percent from 2.2 percent;
          d. Recreation, sport and culture, 0.9 percent from 1.2 percent; and
          e. Restaurants and accommodation services, 2.2 percent from 2.5 percent.

The indices of the rest of the commodity groups moved at their respective annual rates in November 2024. (Tables 5 and 6)

The annual average inflation rate in NCR in 2024 stood at 2.6 percent, lower than the recorded annual average inflation rate of 6.2 percent in 2023. (Table 5, 6A, and 15) 

C. Areas Outside NCR (AONCR)

Following the trend at the national level and in NCR, the overall inflation in AONCR also showed an uptrend at 2.9 percent in December 2024 from 2.6 percent in November 2024. In December 2023, inflation in the area was recorded at 4.0 percent. (Tables A, 5, 6, and 16)

The acceleration of inflation in the area was primarily contributed by the year-on-year increase in the transport index at 1.1 percent during the month from a 1.1 percent annual decline in November 2024. The housing, water, electricity, gas and other fuels also contributed to the uptrend with a faster annual growth rate of 2.9 percent in December 2024 from a 2.0 percent annual increase in the previous month.

Furthermore, higher annual increases were observed in the indices of furnishings, household equipment and routine household maintenance at 3.2 percent in December 2024 from 3.1 percent in the previous month,  and recreation, sport and culture at 2.8 percent during the month from 2.7 percent in November 2024.

On the other hand, lower inflation rates were observed in the indices of the following commodity groups during the month:

          a. Food and non-alcoholic beverages, 3.1 percent from 3.2 percent;
          b. Clothing and footwear, 2.6 percent from 2.8 percent;
          c. Health, 2.6 percent from 2.7 percent; and
          d. Restaurants and accommodation services, 4.3 percent from 4.5 percent.

The indices of the rest of the commodity groups remained at their respective previous month’s annual rates. (Tables 5 and 6)

Relative to their respective November 2024 inflation rates, eight regions in AONCR exhibited higher inflation rates in December 2024. Region II (Cagayan Valley) remained as the region with the highest inflation rate at 4.6 percent, while Region XII (SOCCSKSARGEN) registered the lowest inflation rate of 1.2 percent. (Table 6)

The annual average inflation rate in AONCR in 2024 was recorded at 3.4 percent, lower than the annual average inflation rate of 5.9 percent in 2023. (Table 5, 6A, and 16)

Relative to their 2023 annual average inflation rates, all regions outside NCR recorded slower inflation rates in 2024. Region I (Ilocos Region) registered the lowest annual average inflation rate of 2.1 percent in 2024. On the contrary, the highest annual average inflation rate among regions outside NCR was observed in Region XI (Davao Region) at 4.0 percent. (Table 6A)

Note: CPIs and inflation rates by province and selected city are posted at the PSA OpenSTAT portal at https://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2M__PI__CPI__2018/?tablelist=true.

CLAIRE DENNIS S. MAPA, PhD                          
Undersecretary                           
National Statistician and Civil Registrar General                           
 

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