Philippines sees decline in inflation to 3.9% in December 2023

A notable decrease was observed in the clothing and footwear sector, where the annual increment slowed to 4.2 per cent from 4.3 per cent. Despite the decline in December, the Philippines’ annual average inflation rate for 2023 stood at 6 per cent, slightly higher than the 2022 average of 5.8 per cent. Comparatively, clothing and footwear experienced a higher annual average inflation rate of 4.8 per cent in 2023 against a 2.6 per cent average in 2022.

Core inflation, which excludes volatile items such as food and energy, also showed a deceleration to 4.4 per cent in December 2023, down from 4.7 per cent in the previous month. This brings the average core inflation rate for 2023 to 6.6 per cent, a reduction from 6.9 per cent observed in December 2022, as per PSA.

Regionally, the National Capital Region (NCR) mirrored the national trend with inflation slowing to 3.5 per cent in December 2023 from 4.2 per cent in November 2023. The rate was significantly lower compared to 7.6 per cent recorded in December 2022. Similarly, areas outside the National Capital Region (AONCR) also reported a decline in inflation rate to 4 per cent in December 2023 from 4.1 per cent in November 2023. This is a marked improvement from the 8.2 per cent inflation rate recorded in the area in December 2022.

Fibre2Fashion News Desk (DP)