Inflation continues its uptrend to 4.2 percent
Headline inflation in the Philippines continued its uptrend as it went up further to 4.2 percent at the beginning of 2021. This is the highest inflation recorded since February 2019.
Inflation in December 2020 was posted at 3.5 percent, while in January 2020, 2.9 percent.
The overall inflation was primarily pushed up by the higher annual increment of the heavily-weighted food and non-alcoholic beverages at 6.2 percent during the month, from 4.8 percent in December 2020.
Also contributing to the uptrend in the country’s inflation were the higher annual increases in the indices of transport at 8.6 percent, and restaurant and miscellaneous goods and services at 3.0 percent.
Meanwhile, inflation decelerated in the indices of alcoholic beverages and tobacco at 11.7 percent, and furnishing, household equipment and routine maintenance of the house at 2.9 percent.
The rest of the commodity groups retained their previous month’s annual rates, except for recreation and culture whose annual rate decreased further by -0.7 percent during the month.
Excluding selected food and energy items, core inflation picked up by 3.4 percent in January 2021. Core inflation in December 2020 and in January 2020 was both registered at 3.3 percent.
Inflation for food index at the national level jumped to 6.6 percent in January 2021, from 4.9 percent in December 2020. In January 2020, inflation for food stood at 2.1 percent.
The indices of meat and vegetables both registered double-digit annual increments of 17.1 percent and 21.2 percent, respectively. In addition, faster annual increases were recorded in the indices of the following food groups:
Corn, 1.6 percent;
Other cereals, flour, cereal preparation, bread, pasta and other bakery products, 2.1 percent;
Fish 3.7 percent;
Oils and fats, 2.9 percent; and
Fruits, 9.0 percent.
On the other hand, inflation were slower in the indices of sugar, jam, honey, chocolate and confectionery at 0.3 percent, and food products not elsewhere classified at 3.2 percent. The indices of rice; and milk, cheese and egg retained their corresponding previous month’s annual rates of 0.1 percent and 1.7 percent.