MANILA, Philippines — The country’s headline inflation rate has accelerated to 2.9 percent in December last year, a 0.4 percent uptick compared to the November rate, the Philippine Statistics Authority (PSA) said Tuesday.

In a press briefing, national statistician Claire Dennis Mapa said that although there is an increase in the December 2024 inflation rate, the December 2023 inflation rate was higher at 3.9 percent. 

Inflation rose in December 2024 was driven by higher costs for housing, water, electricity, gas, and other fuels, which increased to 2.9 percent from 1.9 percent in November, according to Mapa. 

Transport also contributed, reversing from a 1.2 percent drop in November to a 0.9 percent increase in December. At the same time, recreation, sport, and culture saw a slight rise, with inflation climbing to 2.5 percent from 2.4 percent the previous month.

The statistics bureau likewise said that the following sectors contributed to the higher inflation rate in December 2024:

• Food and non-alcoholic beverages – 44.3 percent share (1.3 percentage points)
• Housing, water, electricity, gas, and other fuels – 21.4 percent share (0.6 percentage point)
• Restaurants and accommodation services – 12.6 percent share (0.4 percentage point)

Lower food inflation

Mapa noted that food inflation during the December 2024 period remained at 3.5 percent, this is lower compared to the 5.5 percent food inflation in December 2023.

In December 2024, food inflation contributed 41.9 percent or 1.2 percentage points to the overall inflation rate. The primary drivers of food inflation during the month were vegetables, tubers, plantains, and pulses, which accounted for 34.5 percent or 1.2 percentage points. 

Following closely were meat and other parts of slaughtered land animals, contributing 27.4 percent or 1.0 percentage point. Lastly, cereals and cereal products, including rice, corn, flour, bread, pasta, and other related items, made up 13.9 percent or 0.5 percentage point of the food inflation share.