The Philippines' Inflation Rate Accelerates to 8.1% in December

December was a tougher time for Filipinos than we previously thought. Much has been said about the sky-high consumer prices for vegetables, meat, and the like during the holidays. And the data backs it up.

According to a representative of the Philippine Statistics Authority, inflation in the Philippines reached 8.1 percent in the last month of 2022.

Before this, the Bangko Sentral ng Pilipinas had claimed that inflation last December ended somewhere between 7.8 and 8.6 percent. In a briefing, National Statistician Claire Dennis S. Mapa showed the final figures for 2022. The said rate was 3.1 percent faster than that of December 2021.

Meanwhile, the full-year inflation rate went from 3.9 percent in 2021 to 5.8 percent in 2022. The government originally had an estimated target band of two and four percent.

Vegetable prices grew 32.4 percent while the rate for sugar increased to 38.8 percent. This is because of higher input costs and lower production caused by weather disruptions. Consumer prices for onions, rice, and more rose subsequently.

The Department of Agriculture had earlier chalked the high prices of crops up to the month being an "off season" and ther rise of smuggling concerns. All vegetable items contributed to about 0.9 percentage points to the overall inflation.

Meanwhile, commodities like meat and fish gave us about 0.8 percentage points. Processed food commodities like sugar and bread contributed to 0.7 percentage points.

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National Economic and Development Authority Secretary Arsenio M. Balisacan said that the government is working to address the impact of inflation through the modernization of the country's agriculture systems. It is also banking on the development of our agribusiness sector this year to ensure adequate and affordable food supply.

President Ferdinand "Bongbong" Marcos, Jr. had extended the validity of the reduced import rate duties for products, as well. Balisacan also noted that the effects of inflation is a challenge not just in the Philippines, but for the entire world, too.