Philippine inflation speeds up to 2.9% in December

Philippine inflation accelerated to 2.9% in December 2024, marking the fastest increase in four months and up from 2.5% in November.

The December inflation rate fell within the Bangko Sentral ng Pilipinas' (BSP) forecast range of 2.3% to 3.1% and was higher than economists' estimates.

According to National Statistician and PSA chief Undersecretary Claire Dennis Mapa, price hikes in housing, water, electricity, gas, and other fuels accounted for 52.9% of the increase.

Increases in transportation costs, particularly gasoline, diesel, and passenger sea transport, also contributed to the higher inflation rate.

The inflation rate for rice, the country's staple food, slowed to 0.8%, its lowest since January 2022.

This brought the average inflation rate for 2024 to 3.2%, meeting the government's target of 2% to 4% and marking the first time the target was met in three years.

Benign inflation is expected to give the BSP space to continue its rate-cutting cycle, with a possible further rate cut hinted for February.