Inflation increased to 8.1 percent in December , from 8.0 percent in November 2022, the Philippine Statistics Authority (PSA) said Thursday.

This is the highest inflation rate reported for 2022 and the highest since November 2008, the PSA added. Inflation in December 2021 was lower at 3.1 percent.

The average inflation rate for 2022 stood at 5.8 percent, higher than the 2021 average inflation rate of 3.9 percent.

The higher inflation in December 2022 was primarily brought about by the faster year-on-year growth rate in the index of food and non-alcoholic beverages of 10.2 percent, from 10 percent in November 2022.

This was followed by restaurants and accommodation services whose inflation rate accelerated to 7.0 percent, from 6.5 percent in November 2022. Third was housing, water, electricity, gas and other fuels with inflation rate of 7 percent in December 2022, from 6.9 percent inflation in the previous month.

Food inflation at the national level rose further to 10.6 percent in December 2022, from 10.3 percent in November 2022. In December 2021, food inflation was far lower at 1.6 percent.

Higher year-on-year growth rates in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 32.4 percent; rice at 3.4 percent; and fruits and nuts at 7.6 percent were the main contributors to the increase in the December 2022 food inflation.

In addition, faster annual increments were in the indices of the following food groups:

a. Flour, bread and other bakery products, pasta products, and other cereals, 10.9 percent;

b. Milk, other dairy products and eggs, 9.9 percent;

c. Sugar, confectionery and desserts, 38.8 percent; and

d. Ready-made food and other food products not elsewhere classified (n.e.c.), 9.4 percent.

Slower annual growth rates were observed in the indices of the following food groups in December:

a. Corn, 26.3 percent;

b. Meat and other parts of slaughtered land animals, 7.4 percent;

c. Fish and other seafood, 6.3 percent; and

d. Oils and fats, 19.2 percent. PSA