The Philippine's headline inflation ballooned to 5.3 percent in August 2023 from the 4.7 percent posted in July 2023, the Philippine Statistics Authority (PSA) said on Tuesday, September 5.
The August 2023 headline inflation pushed the full-year average inflation at 6.6 percent.
According to PSA, food and non-alcoholic beverages primarily drove the August 2023 inflation. This commodity group gained an 8.1 percent inflation rate and contributed 57.4 percent share in the uptrend.
The statistics agency said the uptick in the food inflation was mainly attributed to the following:
- Cereals and cereal products, including rice, corn, flour, bread, and other bakery products - 8.3 percent inflation
- Vegetables, tubers, plantains, cooking bananas and pulses - 31.9 percent inflation
- Fish and other seafood - 6.9 percent inflation
The second major contributors to August 2023 inflation are restaurants and accommodation services with 7.1 percent inflation rate and contributed 12.8 percent share in the uptrend.
Coming in third as the major contributors to the August 2023 inflation are housing, water, electricity, gas, and other fuels with 2.5 percent inflation rate and contributed a 10.0 percent share in the uptrend.
The uptick in housing, water, electricity, gas, and other fuels was caused by house rentals with 4.2 percent inflation, water supply with 12.7 percent inflation, and wood fuel with 6.8 percent
Inflation in NCR, AONCR
PSA said inflation moved at a faster pace in the National Capital Region (NCR) at 5.9 percent in August 2023, higher than the 5.6 percent posted in July 2023.
Similar to the nationwide inflation rate, food and non-alcoholic beverages caused the higher inflation in NCR at 8.6 percent.
"This was followed by transport with an inflation rate of 1.4 percent from an annual decline of -3.2 percent in the previous month," it said.
The areas outside the NCR (AONCR) also saw an uptrend in inflation, with 5.2 percent in August 2023.
"The acceleration of inflation in the area was mainly contributed by the higher annual increase in food and non-alcoholic beverages at 8.0 percent in August 2023 from 6.2 percent in July 2023," the statistics agency said.
Twelve regions posted higher inflation rates in August 2023.
Central Luzon had the highest inflation rate at 7.0 percent, while Eastern Visayas had the lowest inflation rate at 3.1 percent.
