Inflation hits 2.9% in December, ends 2024 at 3.2%

MANILA, Philippines — The Philippine Statistics Authority (PSA) announced on Tuesday, January 7, that December 2024 headline inflation rose to 2.9% from 2.5% in November 2024, bringing the full-year 2024 inflation rate to 3.2%.

The 2024 inflation rate fell within the government’s target range for the year.

“The Philippines’ headline inflation or overall inflation increased to 2.9% in December 2024 from 2.5% in November 2024. In December 2023, the inflation rate was higher at 3.9%,” the PSA said in a statement. 

The PSA explained the inflation rate in December 2024 was driven by faster increases in housing, water, electricity, gas and fuel prices, which rose to 2.9%—a one-percentage-point increase from November 2024’s 1.9%.

There was also an increase in inflation for recreation, sports and culture from 2.4% in November 2024 to 2.5% in December 2024.  

Food inflation in December 2024 was recorded at 3.5%  

Core inflation for last month also increased to 2.8% compared to November 2024’s 2.5%. 

The National Capital Region (NCR) had the highest inflation rate increase, going from 2.2% in November 2024 to 3.1% in December 2024. 

“The main driver to the increase in the inflation rate in the region was the higher annual increment in the index of housing, water, electricity, gas and other fuels at 3.0% in December 2024 from 1.5% in November 2024,” the PSA said. 

Outside of NCR, inflation also increased from 2.6% in November 2024 to 2.9% in December 2024.  

“The Philippines’ annual average inflation rate for 2024 stood at 3.2%, which was lower than the 2023 annual average inflation rate of 6.0%,” the PSA said. 

The agency explained the lower annual inflation was due to a slower annual average increase in food and non-alcoholic beverage prices. Inflation for food and drink products decreased to 4.4% in 2024, down from 7.9% in 2023.

There was also a lower than average inflation for housing, water, electricity, gas and other fuels in 2024, which was at 1.7% from 2023’s 4.9%. 

“Except for education services, the indices of the rest of the commodity groups recorded downtrend in their annual average inflation in 2024 compared with 2023, with the financial services recording an