The slowdown in transportation costs led inflation to slow to 8.6 percent in February, according to the Philippine Statistics Authority (PSA).
In a virtual briefing on Tuesday, National Statistician Claire Dennis S. Mapa said transport costs slowed to 9 percent in February from 11.1 percent in January 2023.
However, Mapa noted that out of the 13 commodity groups, nine commodity groups have continued to post increases. Announcements that there could be an increase in pump prices in March which could keep inflation high.
“Titignan natin. Ang isang malaking contributory (factor) again yung transport may announcement tayo na magtaas ang presyo ng gasoline and diesel ngayong linggo so the PSA data collectors sa ating mga field offices ay i-ta-track ito,” Mapa said in the briefing.
Based on the seasonally adjusted Consumer Price Index (CPI), inflation slowed to only 0.3 percent in February from the 1 percent recorded in January. This, Mapa said, is further proof that inflation did slow down.
“Pero akita din natin na yung core inflation medyo mataas compared sa January so may mga items na medyo sticky, continuous ang pagtaas niya, Restaurant and Accommodation services for one. But transport for the month of February seems to be the major contributor dito sa pagbaba,” Mapa said.
The PSA said among the 13 commodity groups, nine commodity groups showed higher inflation rates. These were led by food and non-alcoholic beverages which grew 10.8 percent and accounted for 47.5 percent of the increase in inflation.
Other commodities that posted increases were alcoholic beverages and tobacco to 11 percent; clothing and footwear, 4.8 percent; and furnishings, household equipment and routine household maintenance, 6.2 percent.
The data also showed health inflation increased 4 percent in February; information and communication, 0.8 percent; recreation, sport and culture, 4.4 percent; restaurants and accommodation services, 8.1 percent; and personal care, and miscellaneous goods and services, 5.3 percent.
“The indices of housing, water, electricity, gas and other fuels; and education services moved at their previous month’s annual rates at 8.6 percent and 3.6 percent, respectively. Meanwhile, the financial services index continued to record zero percent annual rate,” PSA said in a statement.
Core inflation, which excludes selected food and energy items in the headline inflation, rose to 7.8 percent in February 2023, from 7.4 percent in January 2023. In February 2022, core inflation was lower at 1.9 percent.
Mapa said core inflation in February was highest since March 1999 when it reached 8.1 percent. Core inflation started increasing in March 2022 when it increased to 2.2 percent from February 2022.
The National Statistician said this means core inflation has been steadily increasing for the past 13 to 14 months. Core inflation excludes certain highly volatile food and non-food items.
Meanwhile, inflation in the National Capital Region (NCR) increased further to 8.7 percent from 8.6 percent in January 2023. In February 2022, the inflation rate in the area stood at 1.9 percent.
The main driver in the increase of inflation rate in the area was housing, water, electricity, gas and other fuels commodity groups whose index registered a year-on-year increase of 7.7 percent during the month from 6.9 percent in January 2023.
Also contributing to the uptrend were furnishings, household equipment and routine household maintenance with 6.9 percent inflation rate and restaurants and accommodation with 10.9 percent inflation rate.
The inflation rate in Areas Outside NCR (AONCR) decreased to 8.5 percent in February 2023, from 8.7 percent in January 2023, following the trend at the national level. In February 2022, inflation in the area was recorded at 3.4 percent.
The lower inflation in the area was mainly brought about by the deceleration of the inflation rate in transport at 8.5 percent during the month, from 10.7 percent in January 2023.
In addition, housing, water, electricity, gas and other fuels recorded an inflation rate of 8.9 percent in February 2023, from 9.1 percent in the previous month.
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