The country’s headline inflation rose to 2.9% in December 2024, a slight increase from November, driven by higher prices in housing, transportation, and food, the Philippine Statistics Authority (PSA) reported on Tuesday.
The increase was primarily attributed to a 2.9% rise in the cost of housing, water, electricity, gas, and other fuels, which contributed 52.9% to the overall inflation.
Transportation costs also saw a rebound, rising 0.9% after a decline the previous month, accounting for 46.9% of the inflation uptick.
Among commodity groups, food and non-alcoholic beverages led the inflationary pressure, rising by 3.4%, contributing 44.3% to the overall inflation. Key drivers included higher prices for vegetables, meats, and rice.
Following closely behind, housing-related costs, including utilities and fuel, accounted for 21.4% of the inflation rise, with a 2.9% increase in prices.
Restaurants and accommodation services also contributed significantly, with a 3.8% inflation rate and a 12.6% share in the total increase.
Meanwhile, several sectors showed slower inflation compared to November. These include clothing and footwear, health, and restaurants and accommodation services. Additionally, the sugar, confectionery, and desserts category saw a price decrease, with a 2.7% drop, particularly for brown sugar.
Core inflation, which excludes volatile food and energy prices, accelerated to 2.8% in December, indicating broader underlying price pressures.