Inflation jumped to its highest level in nearly 15 years as it accelerated to 8.7 percent from December's 8.1 percent, the Philippine Statistics Authority (PSA) said Tuesday.

''The January 2023 inflation is the highest annual rate recorded since November 2008,'' said Undersecretary Dennis Mapa. In January 2022, inflation was at three percent.

The January data surpassed the Bangko Sentral ng Pilipinas (BSP) forecast of 7.5 percent to 8.3 percent.

"Higher year-on-year increase in the index of housing, water, electricity, gas and other fuels at 8.5 percent from seven percent in December 2022,'' the PSA said.

''This was followed by food and non-alcoholic beverages at 10.7 percent, from 10.2 percent in December 2022,'' it added.

Lower annual increase was observed in the index of transport at 11.2 percent, the PSA said.

Food inflation at the national level climbed to 11.2 percent in January 2023, from 10.6 percent in December 2022. In January 2022, food inflation stood at 1.6 percent.

Higher food inflation was mainly brought about by the increased year-on-year growth in the index of vegetables, tubers, plantains, cooking bananas and pulses at 37.8 percent in January 2023, from 32.4 percent in December 2022.

The index of sugar, confectionery and desserts retained its previous month’s growth rate of 38.8 percent.

Core inflation, which excludes selected food and energy items in the headline inflation, rose to 7.4 percent in January 2023, from 6.9 percent in December 2022. In January 2022, core inflation was lower at 1.8 percent.

Inflation in the National Capital Region increased further to 8.6 percent in January 2023, from 7.6 percent in December 2022. In January 2022, inflation rate in the area stood at 1.3 percent. DMS