Summary Inflation Report Consumer Price Index (2018=100): December 2022

Reference Number: 

2023-001

Release Date: 

Thursday, January 5, 2023

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

Area December 2021 November 2022 December 2022 Year-to-Date*
Philippines        
   Headline 3.1 8.0 8.1 5.8
   Core 1.8 6.5 6.9 3.9
NCR        
   Headline 2.1 7.5 7.6 5.1
AONCR        
   Headline 3.4 8.0 8.2 6.0
Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index
             Philippine Statistics Authority
             *Year-on-year change of average CPI for January to December 2022 vs. 2021

                                               

 

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1. Philippines

The Philippines’ headline inflation increased to 8.1 percent in December 2022, from 8.0 percent in November 2022. This is the highest inflation rate reported for 2022 and the highest since November 2008. Inflation in December 2021 was lower at 3.1 percent. (Tables A and 14, and Figure 1)

The higher inflation in December 2022 than in November 2022 was primarily brought about by the faster year-on-year growth rate in the index of food and non-alcoholic beverages of 10.2 percent, from 10.0 percent in November 2022. This was followed by restaurants and accommodation services whose inflation rate accelerated to 7.0 percent, from 6.5 percent in November 2022.  Came third was housing, water, electricity, gas and other fuels with inflation rate of 7.0 percent in December 2022, from 6.9 percent inflation in the previous month.

Other commodity groups that recorded higher year-on-year increments in December 2022 were the following:

          a. Alcoholic beverages and tobacco, 10.7 percent;
          b. Clothing and footwear, 3.9 percent;
          c. Furnishings, household equipment and routine household maintenance, 4.8 percent;
          d. Health, 3.1 percent;
          e. Recreation, sport and culture, 3.9 percent; and
          f.  Personal care, and miscellaneous goods and services, 4.5 percent.

On the contrary, lower annual increase was observed in the transport index at 11.7 percent in December 2022, from 12.3 percent in November 2022.  Meanwhile, inflation for information and communication (0.7%), education services (3.6%), and financial services (0.0%) remained at their previous month’s rates. (Tables 5 and 6)

Food inflation at the national level rose further to 10.6 percent in December 2022, from 10.3 percent in November 2022. In December 2021, food inflation was far lower at 1.6 percent. (Table 9)

The higher year-on-year growth rates in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 32.4 percent; rice at 3.4 percent; and fruits and nuts at 7.6 percent were the main contributors to the increase in the December 2022 food inflation. In addition, faster annual increments during the month were noted in the indices of the following food groups:

          a. Flour, bread and other bakery products, pasta products, and other cereals, 10.9 percent;
          b. Milk, other dairy products and eggs, 9.9 percent;
          c. Sugar, confectionery and desserts, 38.8 percent; and
          d. Ready-made food and other food products not elsewhere classified (n.e.c.), 9.4 percent.

On the contrary, slower annual growth rates were observed in the indices of the following food groups in December 2022:

          a. Corn, 26.3 percent;
          b. Meat and other parts of slaughtered land animals, 7.4 percent;
          c. Fish and other seafood, 6.3 percent; and
          d. Oils and fats, 19.2 percent. (Table 7)

The Philippines’ average inflation rate for 2022 stood at 5.8 percent, higher than the 2021 average inflation rate of 3.9 percent.

Compared with their respective average inflation rates in 2021, the indices of the following commodity groups recorded higher annual mark-ups in 2022:

          a. Food and non-alcoholic beverages, 5.9 percent;
          b. Clothing and footwear, 2.6 percent;
          c. Housing, water, electricity, gas and other fuels, 6.4 percent;
          d. Furnishings, household equipment and routine household maintenance, 3.2 percent;
          e. Transport, 12.9 percent;
          f.  Recreation, sport and culture, 2.3 percent;
          g. Education services, 1.8 percent;
          h. Restaurants and accommodation services, 4.1 percent; and
          i.  Personal care, and miscellaneous goods and services, 3.0 percent.

On the contrary, average inflation during the year were slower in the indices of alcoholic beverages and tobacco at 7.9 percent; health at 2.6 percent; and financial services at 8.2 percent. The information and communication index maintained its 2021 average inflation of 0.6 percent. (Tables 5, 6A and 14)

Excluding selected food and energy items in the headline inflation, core inflation in December 2022 went up to 6.9 percent, from 6.5 percent in November 2022. Core inflation in December 2021 was observed at 1.8 percent. The average core inflation for 2022 was posted at 3.9 percent, while 3.0 percent in 2021. (Tables A and 11)

 

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2. National Capital Region (NCR)

Inflation in NCR, likewise, moved at a faster pace of 7.6 percent in December 2022, from 7.5 percent in November 2022. In December 2021, the inflation rate in the area was observed at 2.1 percent. (Tables A and 5)

Among the commodity groups, restaurants and accommodation services, with 9.5 percent inflation in December 2022 from 8.8 percent in the previous month, primarily contributed to the uptrend of inflation in the area.  This was followed by housing, water, electricity, gas and other fuels with 4.0 percent inflation in December 2022 from 3.7 percent in the previous month. Other commodity groups with higher year-on-year mark-ups in December 2022 were the following:

          a. Furnishings, household equipment and routine household maintenance, 4.5 percent;
          b. Health, 1.4 percent;
          c. Information and communication, 0.4 percent; and
          d. Recreation, sport and culture, 3.2 percent.

On the other hand, slower annual increments were registered in the indices of alcoholic beverages and tobacco at 7.2 percent, and transport at 14.0 percent. The indices of the rest of the commodity groups retained their respective annual growth rates in November 2022. (Tables 5 and 6)

The average inflation for 2022 in NCR went up to 5.1 percent in 2022, from 2.7 percent in 2021. (Tables 6A and 15)

3. Areas Outside NCR (AONCR)

Following the trend at the national level and NCR, inflation in AONCR also showed an uptrend of 8.2 percent in December 2022, from 8.0 percent in November 2022. In December 2021, it was recorded at 3.4 percent. (Tables A and 5)

Inflation rate in the area was mainly pushed up by the higher year-on-year increment in the food and non-alcoholic beverages index at 10.0 percent in December 2022, from 9.7 percent in November 2022. This was followed by restaurants and accommodation services, recording 6.0 percent annual growth in December 2022, from 5.6 percent in November 2022. Also contributing to the uptrend of inflation in the area was housing, water, electricity, gas and other fuels with 8.1 percent inflation in December 2022, from 8.0 percent in the previous month. Other commodity groups with higher inflation in December 2022 than in the previous month were the following:

          a. Alcoholic beverages and tobacco, 11.4 percent;
          b. Clothing and footwear, 4.1 percent;
          c. Housing, water, electricity, gas and other fuels, 8.1 percent;
          d. Furnishings, household equipment and routine household maintenance, 4.8 percent;
          e. Health, 3.4 percent;
          f.  Recreation, sport and culture, 4.0 percent; and
          g. Personal care, and miscellaneous goods and services, 5.0 percent.

On the other hand, inflation rates for transport and information and communication were slower at 11.2 percent and 0.8 percent, respectively. The annual rates in the indices of education services (2.0%) and financial services (0.0%) remained at their previous month’s annual rates. (Tables 5 and 6)

Compared with their respective annual growth rates in November 2022, 11 regions in AONCR exhibited higher inflation rates in December 2022. Among the regions in AONCR, Region VI (Western Visayas) posted the highest inflation rate of 10.5 percent, while the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) remained as the region with the lowest inflation at 6.3 percent. (Table 6)

The average inflation in AONCR for 2022 accelerated to 6.0 percent, from 4.2 percent in 2021. (Tables 6A and 16)

Relative to their 2021 average inflation rates, all regions in AONCR had higher average inflation rates in 2022, except for Region II (Cagayan Valley) and Region V (Bicol Region). Region XI (Davao Region) registered the highest average inflation of 7.4 percent during the year. On the contrary, BARMM had the lowest annual average inflation of 3.8 percent. (Table 6A)

Note: CPIs and inflation rates by province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
 

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