Philippines 2024 Inflation Update: Current Rate and 2025 Projection Revealed! Must-Know Insights

Hey there! Curious about what’s happening with the Inflation Rate in the Philippines for 2024 and the projections for 2025? Well, as of Jan 2024, it’s at 2.5%, the lowest since Oct 2020. The Federal Philippines central bank adjusted its 2024 forecast to 3.9%, with a further drop to 3.4% in 2025. The government aims for inflation between 2 to 4%. Dive into this article to uncover more about the 2024 rates and what’s expected in 2025!

Inflation Rate Philippines 2024

The annual inflation rate in the Philippines took a dip to 2.8% from the previous month’s 3.9%. Although Philippine inflation is at its slowest in nearly two years, the full-year figures are still above the Central Bank’s target, making short-term rate cuts less likely. The Federal Monetary Board sees the need for policy adjustments amid this sustained downtrend.

These inflation figures are derived from the Consumer Price Index, which rose to 3.9% in Dec, compared to 4.1% in Nov. Despite this, the 2023 average inflation rate stands at 6%, well beyond the central bank’s target range of 2% to 4%. The BSP is closely monitoring inflation expectations and will take necessary steps to bring it under control. Stay tuned for updates on how they navigate this economic landscape!

Economists at Reuters had predicted an annual inflation rate of 4%, factoring in the core inflation sans the surging energy and food prices. The increasing inflation costs bring about specific challenges, especially affecting the overall cost of living. With higher inflation comes elevated prices, posing challenges for individuals managing their expenses. This situation particularly impacts low-income individuals, creating hurdles for their positive spending and investment progress. The dynamics of rising costs are indeed influencing the economic landscape.

The Inflation Rate in the Philippines slowed down to 2.8% in Jan 2024, mainly influenced by the reduced annual growth in food and non-alcoholic beverages, dropping from 5.4% to 3.5%. This trend extended to water, gas, electricity, housing, and other fuels, with a slower yearly increase of 0.7%, down from 1.5%.

Noteworthy dips in annual increments were observed in various commodity groups. Alcoholic beverages and tobacco adjusted from 8.4% to 9%, clothing and footwear increased from 3.8% to 4.2%, and furnishing, routine household maintenance, and household equipment rose from 3.9% to 4.5%. Additionally, restaurants and federal accommodation services experienced a slight change from 5.6% to 5.5%, while personal care, miscellaneous goods, and other services increased from 4.6% to 4%. These fluctuations shed light on the diverse impacts on different aspects of daily life.

Current inflation rate

In the Philippines, the inflation rate hit 3.9% in Dec 2023, marking the lowest point for the year. This rate is determined using the consumer price index, which tracks changes in the average retail prices of goods and services.

In the latest update for Jan 2024, the Philippines’ inflation rate is reported at 2.8%, the lowest since Oct 2020. Although the exact figures are pending confirmation, they are expected to fall within the 2 to 4 percent range. Additionally, the projected GDP stands at 6%. Stay tuned for more insights into the economic landscape!

Projection for the Year 2025

Looking ahead to 2025, the Inflation Rate in the Philippines is anticipated to hover around 3.4%, a projection consistent with the BSP’s forecast. The expectation is for inflation to maintain its course, aligning with the target range for both 2024 and 2025. The aggressive rate hike aims to fortify the economy, with key interest rates expected to remain unchanged.

However, the economic landscape has raised its inflation projection to 5.9% from 5.5%, surpassing the central bank’s target range. Private economists foresee an acceleration in inflation, attributed to quick outlooks influenced by weather impacts and trade restrictions. Yet, the projection for 2025 appears weaker than the anticipated primary downside risk. Stay tuned for updates on how these factors shape the economic scenario moving forward!