The country’s inflation rate eased for the fifth straight month to its lowest level in 15 months in January as housing and utilities prices slowed.

Under rebased 2018 prices, preliminary data from the Philippine Statistics Authority (PSA) showed headline inflation slowed to 3% year on year in January. This was slower compared with 3.2% in December and the 3.7% print in January last year.

It was the fifth consecutive month that headline inflation decelerated since the 4.4% peak seen in August last year.

January’s print matched the pace logged in November 2020 and the slowest in 15 months or since the 2.3% inflation rate recorded in October 2020.

The headline figure also hit the 3% median estimate in a BusinessWorld poll conducted a week ago.

Moreover, the January print was below the 3.4% forecast but still within the 2-4% target band given by the Bangko Sentral ng Pilipinas (BSP) for 2022.

The PSA attributed the downtrend in the headline print last month to slower inflation for housing, water, electricity, gas and other fuels (4.5% in January from 5.1% in December 2021), as well as restaurants and accommodation (3% from 3.2%) and alcoholic beverages and tobacco (5.6% from 6.2%).

Other commodities that eased last month were health (3.1% from 3.2%); recreation, sport and culture (1.5% from 1.6%); and education services (0.6% from 0.7%).

Meanwhile, food and non-alcoholic beverages and financial services steadied from December (1.6% and 43.3%, respectively).

Higher annual increments were also noted in the following: transport (7% from 6.6%); furnishing, household equipment and routine household maintenance (2.4% from 2.1%); personal care, and miscellaneous goods and services (2.2% from 2.1%); clothing and footwear (2% from 1.9%); and information and communication (0.7% from 0.6%).

National Statistician Claire Dennis S. Mapa said inflation data for the bottom 30% income households will remain to have 2012 as a base year as rebasing calculations by the statistics agency is still ongoing.

Inflation as experienced by poor households also eased to 3.2% in January versus the 3.3% seen in December and 4.9% in January 2021. — Ana Olivia A. Tirona

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