Budget Secretary Amenah Pangandaman. (File photo)
MANILA – The downtrend in headline inflation is proof that the economic policies of the Marcos administration are “taking effect,” Budget Secretary Amenah Pangandaman said Tuesday.
This, after the Philippine Statistics Authority (PSA) reported that the inflation dropped further to 2.78 percent in January 2024, lower than the 3.9 percent registered in December 2023 and the 8.7 percent posted in January 2023.
“This shows that our economic policies are taking effect in spite of global headwinds and climate change,” Pangandaman said in a statement.
The latest inflation rate is also the lowest since the 2.3 percent recorded in December 2020, according to the PSA report.
Pangandaman also expressed confidence that the government is “on track” to fulfill its "Agenda for Prosperity" and attain its goals to build a “Bagong Pilipinas” (New Philippines).
“This means that businesses have a greater opportunity to thrive while the government can focus on areas of growth and development,” she said.
“Overall, with lower inflation and lower unemployment rates, we are off to a very good start this 2024, towards high and sustained growth,” Pangandaman added.
The PSA attributed the downtrend in the overall inflation in January 2024 to the slower annual increment of food and non-alcoholic beverages (3.5 percent from December 2023’s 5.4 percent); housing water, electricity, gas and other fuels (0.7 percent from December 2023’s 1.5 percent).
Lower annual increments were also noted in the indices of alcoholic beverages and tobacco (8.4 percent from 9 percent); clothing and footwear (3.8 percent from 4.2 percent); furnishings, household equipment and routine household maintenance (3.9 percent from 4.5 percent); health (3.3 percent from 3.7 percent); and recreation, sport and culture (4 percent from 4.2 percent).
Annual decreases were noted in the indices of restaurants and accommodation services (5.5 percent from 5.6 percent); personal care and miscellaneous goods and services (4 percent from 4.6 percent); transport (0.3 percent from 0.4 percent); and financial services (0.6 percent annual decrease from 0 percent annual rate). (PNA)
