MANILA -- The country’s headline inflation further slowed down to 3.9% in December 2023 compared to the previous month’s 4.1%, the Philippine Statistics Authority said in a press conference on Friday.

This is the lowest level of inflation recorded for 2023, mainly driven by the lower year-on-year growth in the index of housing, water, electricity, gas, and other fuels recorded at 1.5% inflation and 59.6% share on the downward trend of headline inflation of the country.

“Ang nag-ambag ng malaki sa pagbaba ng presyo ng housing, water, electricity, gas, and other fuels ay ang mas mabilis na pagbagsak ng presyo ng kuryente na may -7.8% inflation,” PSA Undersecretary Claire Dennis Mapa said.

“Naka-ambag din sa pagbaba ng presyo para sa housing, water, electricity, gas, and other fuels ang mas mabagal na pagtaas ng presyo ng LPG na 3.6% inlfation at renta sa bahay na may 3.7% inflation.”

This was followed by food and non-alcoholic beverages which posted a 5.4% inflation and 31.6% share on the downtrend of headline inflation.

“Ang nag-ambag ng malaki sa pagbagal ng inflation ng food and non-alcoholic beverages ay ang mas mabilis na pagbagsak ng presyo ng vegetables, tubers, cooking bananas at iba pa na may -9.2 inflation, tulad ng repolyo,” Mapa said.

“Naka-ambag din sa pagbaba ng inflation para sa food and non-alcoholic beverages ang mas mabagal na pagtaas ng presyo ng mga sumusunod: meat and other slaughtered land animals na may 0.2% inflation, partikular ang karne ng manok at coffee and coffee subsitutes na may 3.6% inflation.”

According to Mapa, the top three commodity groups that contributed to December 2023 overall inflation were food and non-alcoholic beverages with 53% share; restaurants and accommodation services with 14% share; and housing, water, electricity, gas, and other fuels with 8.3% share.

The country’s annual average inflation rate for the previous year stood at 6.0%. (PND)