Bangko Sentral ng Pilipinas Governor Ben Diokno (Screenshot)

MANILA – Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno described as “positive news” the continued deceleration of the domestic inflation rate, which slowed further to 3 percent in January 2022 from the previous month’s 3.2 percent.

“It supports the narrative that inflation is on its downward trajectory,” he told journalists in a Viber message on Friday.

The rate of price increases in the first month this year is the lowest since the 3 percent in November 2020, data from the Philippine Statistics Authority (PSA) showed.

National Statistician Dennis Mapa, in a virtual briefing Friday, said they have yet to release the figure for core inflation, which excludes the volatile food and oil items, for January 2022 since they are still coordinating with the BSP on this, following the rebasing of the consumer price index (CPI) base year from 2012 to 2018.

The PSA rebased the CPI base year starting last January to make the report more updated, he said.

He said the source weights for the CPI would now be based on the 2018 Family Income and Expenditure Survey (FIES).

In a presentation, the PSA said the change in the base year for CPI is done every six years.

For the January 2022 inflation rate, the slower rate was traced to the deceleration of annual increases in housing, water, electricity, gas, and other fuels index to 4.5 percent from the previous month’s 5.1 percent.

Other contributors are alcoholic beverages and tobacco; health; recreation, sport, and culture; education services; and restaurants and accommodation services.

On the other hand, higher inflation rates were registered by the clothing and footwear; furnishing, household equipment, and routine household maintenance; transport; information and communication; and personal care, and miscellaneous goods and services. (PNA)