MANILA — The Philippine Statistics Authority (PSA) reported that inflation for 2024 averaged at 3.2%, falling within the government’s target range of 2-4%. This marks a significant improvement compared to the 6% inflation rate in 2023.

In December 2024, inflation slowed to 2.9%, largely driven by a decrease in food and non-alcoholic beverage prices, which rose by just 4.4% compared to 7.9% in 2023. Food inflation specifically dropped from 8% in 2023 to 4.5% last year.

National Statistician Dennis Mapa highlighted that rice inflation slowed to just 0.8%, the lowest since January 2022. He added that negative rice inflation is expected for January 2025.

The deceleration in inflation was also attributed to the housing, water, electricity, and fuel sectors, where inflation dropped to 1.7% from 4.9% in 2023. Other commodity groups, except education services, showed a decline in their average inflation for 2024.

Key Contributing Factors:

Lower food and housing inflation

Stabilized rice prices

Financial services recorded a decline in inflation from 0% in 2023 to -0.6% in 2024

NEDA Secretary Arsenio Balisacan hailed the 3.2% inflation as a notable success, emphasizing the effectiveness of the combined efforts to control inflation despite challenges. He reassured that the government would build on this momentum in 2025, aiming to keep inflation within target.

The government is also focused on ensuring food and water security, especially as PAGASA predicts La Niña conditions to persist until February 2025. Furthermore, the NEDA plans to expand projects aimed at supporting the most vulnerable populations, including the expansion of water access and nutrition programs in local communities.

In support of the agriculture sector, recent amendments to the Agricultural Tariffication Law have increased the Rice Competitiveness Enhancement Fund to PHP30 billion annually, ensuring better resilience for the rice sector.

In addition, the government is facilitating the hog industry’s recovery by enabling the timely withdrawal of frozen pork stocks and fast-tracking the approval of African swine fever vaccines for commercial use.

Looking Ahead to 2025:

As the Philippines enters 2025, Balisacan remains optimistic that strategic, timely measures will continue to curb inflation while fostering economic growth and improving food security. He emphasized the importance of innovation, productivity, and resilience in supporting Filipinos’ purchasing power and promoting an inclusive, stable economy.

IA/MNM