Philippines No. 1
In December 2021, the country’s headline inflation rate fell to 3.6 percent, down from 4.2 percent in November 2021. This is the lowest rate of inflation forecasted for 2021.
The national average inflation rate in 2021 was 4.5 percent, which was higher than the 2.6 percent average inflation rate in 2020. (See Tables A and B, as well as Figure 1)
The slower annual growth in food and non-alcoholic drinks, which was 3.1 percent in December 2021, compared to 3.9 percent in November 2021, was the main driver of the overall inflation downward trend in December 2021.
Lower inflation was also observed in the indices of the following commodity groupings, contributing to the month’s total inflation trend:
Furniture, domestic equipment, and basic house upkeep, 2.3 percent;
Inflation rates were higher in the housing, water, electricity, gas, and other fuels indices, at 5.0 percent, and in the communication indices, at 0.3 percent.
Inflation in the education index has been at 0.7 percent for three months in a row. (See Tables 3 and 4 for more information.)
Annual average inflation rates in 2021 were greater than annual average inflation rates in 2020 in the following key commodity groups:
Other commodity categories, on the other hand, had slower annual average inflation or a negative annual average rate this year, with the exception of communication, which maintained its 2020 annual average rate of 0.3 percent. (See Tables 3 and 4A for more information.)
Core inflation, which excludes some food and energy goods, fell to 3.0% in December 2021, down from 3.3 percent in November 2021. The core inflation rate was 3.3 percent in December 2020. (Answers to Tables A and 9)
The annual average core inflation rate in 2021 was 3.3 percent, slightly higher than the annual average rate of 3.2 percent in 2020. (Answers to Tables A and 9)
Food inflation in the United States continued to fall last month, falling to 3.2 percent from 4.1 percent in November 2021. In December 2020, food inflation was reported to reach 4.9 percent. (See Table 7)
In December 2021, the yearly growth rate of the veggies index declined by -10.0 percent by food group. Furthermore, annual gains in the rice, corn, and fish indices were slower at 0.9 percent, 14.4 percent, 7.0 percent, and 1.1 percent, respectively. During the month, the indices of other food groups had bigger annual increases. (See Table 5)
2. The National Capital Area (NCR)
Similarly, inflation in the NCR increased at a slower rate of 2.8 percent in December 2021, compared to 2.9 percent in November 2021. In December 2020, the region’s inflation rate was 3.2 percent. (A and B Tables)
The annual average inflation rate in the NCR was 3.5 percent in 2021, up from 2.2 percent in 2020. (See Tables 3 and 4A for more information.)
The decrease in NCR inflation was mostly due to a reduced annual rate of increase in the transport index, which was 5.6 percent in November 2021, down from 7.6 percent in November 2021. The annual increases in the indices of food and non-alcoholic beverages (1.5%), alcoholic beverages and tobacco (6.6%), and furnishing, domestic equipment, and routine house maintenance (1.0%) also moderated.
Meanwhile, the housing, water, electricity, gas, and other fuels indices increased by 4.4 percent, while the restaurant and other goods and services indices increased by 2.9 percent. During the month, the rest of the commodity groupings either maintained their previous month’s annual rates or had zero percent annual increase. (See Tables 3 and 4 for more information.)
3. Areas Outside of the National Capital Region (AONCR)
In December 2021, inflation in AONCR fell to 3.9 percent, down from 4.5 percent in November 2021. Inflation in the AONCR was 3.7 percent in December 2020. (A and B Tables)
Inflation in the AONCR increased to 4.7 percent in 2021, up from 2.7 percent in 2020. (See Tables 3 and 4A for more information.)
The decreased annual rate of increase in the food and non-alcoholic drinks index, which was 3.5 percent during the month, contributed to the downward trend in AONCR inflation. Similarly, annual increases in the indexes of the following commodity groupings slowed:
Furniture, domestic equipment, and basic house upkeep, 2.7 percent;
Inflation for housing, water, electricity, gas, and other fuels, on the other hand, was higher at 5.2 percent, while the indices for the rest of the commodity groupings maintained their annual growth rates from the previous month. (See Tables 3 and 4 for more information.)
Thirteen AONCR regions experienced reduced inflation in November 2021 when compared to their annual growth rates in November 2021. The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) had the lowest inflation rate of 2.1 percent, while Region IX (Zamboanga Peninsula) and Region XI (Davao Region) had the highest inflation rates of 6.1 percent each. (See Table 4)
All regions in the AONCR experienced higher annual average inflation rates in 2021 than they did in 2020. Region V (Bicol Region) had the highest annual average inflation rate of 6.6 percent during the year. Region VII (Central Visayas), on the other side, had the lowest yearly average inflation rate of 2.5 percent (Table 4A).
What will the Philippines’ inflation rate be in 2021?
According to the National Economic and Development Authority (NEDA), the Philippines had its lowest monthly inflation rate in 2021. The headline inflation rate fell to 3.6 percent in December from 4.2 percent in November 2021, according to the Philippine Statistics Authority (PSA).
Inflation rate in the Philippines in 2022?
Inflation is expected to average 3.4 percent in 2022, up 0.1 percentage points from last month’s projection, and 3.2 percent in 2023, according to the FocusEconomics Consensus Forecast panel.
What is the current rate of inflation?
According to U.S. Labor Department data published March 10, the annual inflation rate in the United States was 7.9 percent for the 12 months ended February 2022, the highest since January 1982 and after reaching 7.5 percent earlier. On April 12, at 8:30 a.m. ET, the next inflation update will be released. It will provide the inflation rate for the 12-month period ending March 2022.
Annual US inflation rates are shown in the chart and table below for calendar years 2000 to 2022. (Historical inflation rates can be found here.) The US Inflation Calculator can be used to calculate accumulated rates between two separate dates.
Why is inflation in the Philippines increasing?
THE PHILIPPINES MANILA, Philippines As Filipinos battled to make ends meet amid the coronavirus epidemic, prices soared at a far quicker rate in 2021 than the government anticipated.
On Wednesday, January 5, the Philippine Statistics Authority stated that inflation for the entire year of 2021 was 4.5 percent, owing primarily to increasing food prices.
The economic team of President Rodrigo Duterte projected for inflation to be between 2% and 4%. Analysts did not expect the full-year result to fall within ideal levels because it only fell within the target band once in 2021, at 4% in July.
The 3.6 percent registered in December lowered the inflation rate for the entire year of 2021, compared to 4.2 percent in November.
In December, vegetable prices fell 10%, while fish and rice prices increased at a slower rate of 7% and 0.9 percent, respectively.
According to National Statistician Dennis Mapa, the biggest drivers of inflation in 2021 were meat, transportation, and fuel prices.
To keep prices in check, Socioeconomic Planning Secretary Karl Chua suggested that the local supply of meat, particularly pork, be supplemented by pork imports.
Chua also urged for additional imported pork to be distributed outside of Metro Manila, citing meat as one of the top three causes of inflation in 14 of the 16 regions outside the capital in December.
“Affordable food prices and ongoing supply of products and services are critical in the National Capital Region (NCR) and nearby provinces of Cavite, Rizal, and Bulacan, which are presently on Alert Level 3. The government is aiming to improve local supply and ensure regular emptying of inventories from cold storages to keep meat inflation in check, especially pork,” Chua said.
In December, the inflation rate in the NCR fell to 2.8 percent, down from 2.9 percent in November. This was owing to the slower rise in the price of petroleum and several food goods.
Is low inflation beneficial?
Inflation that is low, consistent, and predictable is good for the economyand your money. It aids in the preservation of money’s worth and makes it easier for everyone to plan how, where, and when they spend.
Companies, for example, are more likely to expand their operations if they know what their costs will be in the coming years. This allows the economy to grow at a steady rate, resulting in better salaries and additional jobs.
What is the Philippines’ highest inflation rate?
From 1958 to 2022, the Philippines’ inflation rate averaged 8.12 percent, with a high of 62.80 percent in September 1984 and a low of -2.10 percent in January 1959.
Is high inflation beneficial?
- Inflation, according to economists, occurs when the supply of money exceeds the demand for it.
- When inflation helps to raise consumer demand and consumption, which drives economic growth, it is considered as a positive.
- Some people believe inflation is necessary to prevent deflation, while others say it is a drag on the economy.
- Some inflation, according to John Maynard Keynes, helps to avoid the Paradox of Thrift, or postponed consumption.
Is a 3 inflation rate excessive?
As a public speaker, I’ve never been particularly successful at getting the audience to laugh. However, at a speech I gave in St. Louis a few months back, I stumbled into a guaranteed laugh line. “The current trend rate of inflation remains persistently high at 3%,” says the report.
I know, it’s not exactly Rodney Dangerfield. However, for those who remember the 1970s’ horrific double-digit inflation rates, that description can be humorous. The joke highlights the remarkable difference between the volatile and growing inflation of two decades ago, which fostered uncertainty and speculative activity, making long-term growth practically impossible, and the current inflation rate, which is incredibly low and stable.
Indeed, the annual rate of CPI inflation has been at or below 3% for the past four years, and most forecasts expect the same outcome this year. However, looking farther down the road, it is evident that few individuals expect inflation to continue to improve. Most households predict inflation will exceed 3% long into the next century, according to a recent survey conducted by the University of Michigan Research Center.
Some of you may recall that inflation was around 4% when President Nixon imposed wage and price controls in 1971, during what was considered a moment of crisis. As a result, mild, single-digit inflation was considered unnecessary and undesirable just over a generation ago. Today, we should be no more oblivious to the hazards of inflation as we were back then.
Unfortunately, even at modest levels, inflation erodes purchasing power. For example, low inflation has already eroded the purchasing power of the dollar by over 20% since the beginning of the decade. If inflation continues at its current rate of 3%, a dollar will only be worth half as much in a decade!
I don’t want to take anything away from the remarkable track record of recent years. We have seen the remarkable convergence of several positive economic conditions in a very short period of time: strong investment; moderate, balanced growth; and low, stable inflation. However, inflation will continue to be excessively high as long as people and businesses are required to consider the rate of inflation when making economic decisions. We cannot become complacent in our determination to bring it down. Because our economy can only reach its full potential in an environment free of inflation and inflation expectations.
What is the impact of inflation on the Philippine economy?
Although business owners stated in the Total Remuneration Survey (TRS) 2020 that they want to raise pay by an average of 5.6 percent in 2021, more over half of the companies stated that they will postpone salary increases or reduce compensation increment levels to keep expenses down.
So, how does the rate of inflation influence Filipinos’ lives? Here’s what you’ll need to know.
The effects of the rising inflation in the Philippines
An increase in the rate of inflation means you’ll have to pay more for the same items you used to get for less money. For others, this may imply a lesser level of living and the sacrifice of luxury in order to obtain basic necessities.
As the cost of living rises, an ordinary earner may be forced to downsize his or her lifestyle. A high rate of inflation means you’ll have less disposable income and hence less money to spend than you’d want.
The effects of inflation on people with fixed incomes, such as pensioners who rely on pension benefits, will be felt. Given the rise in the cost of basic commodities, prescriptions, and utilities, their regular pension may no longer be sufficient to support their current lifestyle.
Even if health-care costs are expected to climb more slowly this year, there’s still a potential that, in order to satisfy everyday demands, health will be prioritized less for average income earners. You may no longer be able to acquire nutritional supplements or receive prescribed treatments, and your regular examinations may be curtailed.
Due to a lack of financial resources and a high rate of inflation, you may find yourself with insufficient funds to allocate for your savings, your child’s education, health emergencies, business, and retirement, all of which may have an impact on your future goals.