MANILA, Philippines – The rate of increase in the prices of goods remained within the government’s target range despite the spike in oil prices and the impact of Typhoon Odette (Rai) on basic goods.

The Philippine Statistics Authority (PSA) on Friday, February 4, reported that the country’s inflation rate inched down to 3% in January 2022, within the target range of 2% to 4%. This is lower than the rebased figure of 3.2% for December 2021.

Inflation in Metro Manila eased to 1.3% in January 2022 from the 2.1% in December 2021. This was due to a deflation of 3% in food and non-alcoholic beverages.

Meanwhile, inflation in areas outside the National Capital Region went up to 3.5% from 3.4%.

The PSA noted that at the national level, food prices remained steady in January, despite effects seen in the aftermath of weather disturbances.

It was also during January when the government implemented another upward adjustment in excise taxes on alcohol and tobacco.

But the downward adjustment in power rates was able to offset the increases in other goods and services.

Earlier, the Bangko Sentral ng Pilipinas did not publish its forecast range for January, as it awaited the PSA’s readjusted figures.

The PSA has rebased the consumer price index, which is the basket of goods used to determine the inflation rate. The weight and composition of the basket was adjusted to better reflect the consumption habits of households over time.

The Philippines’ inflation rate for the entire 2021 hit 4.5%, beyond the government’s target range. – Rappler.com