NATIONAL
Advocates Philippines
Philippines' Inflation Sees Uptick To 3.4% In February 2024
Photo credit: PCO
The Philippines witnessed a surge in headline inflation, reaching 3.4 percent in February 2024, compared to 2.8 percent in January 2024. The national average inflation for the period spanning January to February 2024 settled at 3.1 percent, marking a notable increase. However, this remains below the 8.6 percent inflation rate recorded in February 2023.
The surge in overall inflation in February 2024 was primarily attributed to a higher year-on-year increase in food and non-alcoholic beverages, rising from 3.5 percent to 4.6 percent. Additionally, transport witnessed an annual increase of 1.2 percent, reversing a 0.3 percent decline in January 2024. Housing, water, electricity, gas, and other fuels also contributed to the uptrend with a faster annual increase of 0.9 percent. Alcoholic beverages and tobacco noted a slight uptick at 8.6 percent in February 2024.
In contrast, seven commodity groups saw lower inflation rates during the month, including clothing and footwear, furnishings, household equipment, routine household maintenance, health, information and communication, recreation, sport, culture, restaurants and accommodation services, and personal care, and miscellaneous goods and services.
The top three contributors to the overall inflation in February 2024 were food and non-alcoholic beverages (52.1 percent share), restaurants and accommodation services (15.3 percent share), and housing, water, electricity, gas, and other fuels (5.8 percent share).
Food inflation at the national level surged to 4.8 percent in February 2024, up from 3.3 percent in January 2024, though still below the 11.1 percent recorded in February 2023.
The acceleration in food inflation was driven by a slower year-on-year decrease in vegetables, tubers, plantains, cooking bananas, and pulses index. Meat and other parts of slaughtered land animals also recorded a 0.7 percent annual increment, contributing to the upward trend. Cereals and cereal products, including rice, corn, flour, bread, and other bakery products, posted a faster annual increment of 17.0 percent.
On the contrary, lower annual growth rates were observed in the indices of fish and other seafood, milk, other dairy products and eggs, fruits and nuts, and ready-made food and other food products not elsewhere classified.
Cereals and cereal products took the lead in contributing to food inflation with a 98.7 percent share, followed by fruits and nuts (6.1 percent share), and milk, other dairy products, and eggs (4.8 percent share).
Core inflation, excluding selected food and energy items, slowed down to 3.6 percent in February 2024 from 3.8 percent in the previous month.
National Capital Region (NCR)
Inflation in the National Capital Region (NCR) accelerated to 3.2 percent in February 2024, with the main drivers being food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels.
In contrast, lower inflation rates were noted in clothing and footwear, furnishings, household equipment, routine household maintenance, information and communication, recreation, sport, culture, and personal care, and miscellaneous goods and services.
Areas Outside NCR (AONCR)
Reflecting the national trend, overall inflation in AONCR increased to 3.5 percent in February 2024. Food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels contributed to the uptrend.
Among the regions in AONCR, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) posted the highest inflation rate of 5.3 percent, while Region I (Ilocos Region) remained the region with the lowest inflation rate at 2.0 percent.
The surge in overall inflation in February 2024 was primarily attributed to a higher year-on-year increase in food and non-alcoholic beverages, rising from 3.5 percent to 4.6 percent. Additionally, transport witnessed an annual increase of 1.2 percent, reversing a 0.3 percent decline in January 2024. Housing, water, electricity, gas, and other fuels also contributed to the uptrend with a faster annual increase of 0.9 percent. Alcoholic beverages and tobacco noted a slight uptick at 8.6 percent in February 2024.
In contrast, seven commodity groups saw lower inflation rates during the month, including clothing and footwear, furnishings, household equipment, routine household maintenance, health, information and communication, recreation, sport, culture, restaurants and accommodation services, and personal care, and miscellaneous goods and services.
The top three contributors to the overall inflation in February 2024 were food and non-alcoholic beverages (52.1 percent share), restaurants and accommodation services (15.3 percent share), and housing, water, electricity, gas, and other fuels (5.8 percent share).
Food inflation at the national level surged to 4.8 percent in February 2024, up from 3.3 percent in January 2024, though still below the 11.1 percent recorded in February 2023.
The acceleration in food inflation was driven by a slower year-on-year decrease in vegetables, tubers, plantains, cooking bananas, and pulses index. Meat and other parts of slaughtered land animals also recorded a 0.7 percent annual increment, contributing to the upward trend. Cereals and cereal products, including rice, corn, flour, bread, and other bakery products, posted a faster annual increment of 17.0 percent.
On the contrary, lower annual growth rates were observed in the indices of fish and other seafood, milk, other dairy products and eggs, fruits and nuts, and ready-made food and other food products not elsewhere classified.
Cereals and cereal products took the lead in contributing to food inflation with a 98.7 percent share, followed by fruits and nuts (6.1 percent share), and milk, other dairy products, and eggs (4.8 percent share).
Core inflation, excluding selected food and energy items, slowed down to 3.6 percent in February 2024 from 3.8 percent in the previous month.
National Capital Region (NCR)
Inflation in the National Capital Region (NCR) accelerated to 3.2 percent in February 2024, with the main drivers being food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels.
In contrast, lower inflation rates were noted in clothing and footwear, furnishings, household equipment, routine household maintenance, information and communication, recreation, sport, culture, and personal care, and miscellaneous goods and services.
Areas Outside NCR (AONCR)
Reflecting the national trend, overall inflation in AONCR increased to 3.5 percent in February 2024. Food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels contributed to the uptrend.
Among the regions in AONCR, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) posted the highest inflation rate of 5.3 percent, while Region I (Ilocos Region) remained the region with the lowest inflation rate at 2.0 percent.
Mar 5, 2024
