The expression "New Year, Good News" appears in manifestations every year. But is this actually true? The answer is a resounding yes! It is indeed factual. The aforementioned phrase is relevant this year because there is wonderful news. This is due to a perceived decline in inflation in January 2023. In fact, the Philippines are not exempt from this. There have been several forecasts and updates in the news on the inflation rate in the Philippines in an effort to astonish and please the Filipino people. 

With that being stated, January 2023 is probably the month when the news on inflation will start to slow down and then eventually come to a fall. According to the most recent issue of The Market Call, there is inflation dropping as crude prices return to rates from before the Russia-Ukraine war. Evidently, the Russian invasion led to a severe humanitarian catastrophe that affected many people, not only in Ukraine but also throughout the entire world. This is due to the fact that the war had prohibitions that hindered exporters from the countries that were mentioned. The hindered products that these countries produced include metals, wheat, gasoline, and energy. Although these commodities can simply be purchased in several countries, Ukraine and Russia still had an impact that made consumers' lives a little difficult due to the increased rates in production and acquisition. The war that had happened in the previously mentioned countries enabled higher costs in the year 2022. This has then caused inflation to soar at rates that have not occurred in years. 

Which is why, as the news on inflation states that there is inflation dropping happening this January 2023, a lot of individuals, especially Filipino citizens, will be delighted because they will have lower costs to worry about. This is because inflation rates in the Philippines are said and reported to drop after updates and forecasts were made by statisticians and the government. This will have an impact on the Philippine economy since there are vulnerable sectors that struggle with the high costs of day to day living. What is more, Filipino consumers will be relieved since economists generally concur that a low, stable level of inflation is significant and just right to drive progress in the local economies.

What are the updates and forecasts on the inflation rate in the Philippines?

According to the Bangko Sentral ng Pilipinas (BSP), the escalation of the domestic rate of price rises to 8.1 percent in December 2022 is consistent with the projection that inflation might peak last month. The inflation rate in December of last year was within the range of 7.8 to 8.6 percent forecasted by the central bank for the month, and it raised the average inflation rate for the whole year to 5.8 percent, well beyond the government's goal range of 2 to 4 percent. According to a specialist, the domestic inflation rate may have peaked in December of last year, but there is a chance that it may climb again through February 2023, or the time when oil prices began to rise as a result of the conflict between Russia and Ukraine.

After reaching 7.7% in October, inflation reached 8% in November. After rising by 7.2 percent in October, the Philippine Stock Exchange Composite index (PSEi) saw its share prices rise by 10.2 percent month over month in November, which was the second-highest gain. Volume-wise, the Philippine Stock Exchange Composite index trading volume climbed by 11.3 percent in November compared to the previous month's 46.9 percent decline. 

The current rate of inflation increase, according to the Philippine Statistics Authority (PSA), is the quickest since November 2008 and is mostly attributable to yearly increases in the cost of food and energy. Even though inflation risks are on the rise this year, the Bangko Sentral ng Pilipinas stated that by 2024, these risks are expected to be about equal. The concerns were ascribed to the rising prices of food on the world market as a result of increasing fertilizer costs, supply chain bottlenecks, and trade restrictions on the home front. In addition, the Bangko Sentral ng Pilipinas also mentioned rising sugar costs, ongoing requests to increase transportation fares, and anticipated salary increases. These increases were caused by the influence of weather disruptions on the pricing of fruit and vegetables. 

In other words, during December 2022, the news on inflation increased somewhat to 8.1% from 8.0% in November. The figure for December was the highest since November 2008. According to the release's specifics, food and non-alcoholic drink expenditures surged more quickly in December. Residential and utility expenditures also increased more quickly. Consequently, the weaker increases in transportation costs were more than mitigated. The yearly average inflation rate also increased in December, reaching 5.8%. Finally, compared to the prior month, consumer prices increased by a seasonally adjusted 0.25% in December, which was less than the 0.68% increase in November. The figure for December was the lowest in a year. The price of food and gasoline will continue to rise due to rising input prices and pressure from imports, which will keep inflation high. 

But inflation in January 2023, shows that the headline rate should decline a little due to weaker domestic demand and the lingering effects of the Central Bank's tightening fiscal management. Despite the absence of proof in the statistics that inflation will end, it is anticipated that the peak will be lowered. While the conclusion of the tropical storm season will avoid additional supply interruptions, the 350 basis point interest rate hikes implemented by the Bangko Sentral ng Pilipinas in the second quarter of 2022 will be more fully recognized in the upcoming months, including slower economic development. Reduced transportation-related pressure will result from falling energy costs, while high inflation will be harder to maintain as the year-over-year base rises, especially starting in the second quarter of 2023. The CPI for the Philippines predicts that inflation will reach 4.6% in 2023, up from the values estimated last month and 3.1% in 2024.

With everything mentioned, we must all try and take advantage of this decline! If you are thinking of investing in properties, Vista Residences provides remarkable condo units that will make spending money worth it. Go ahead and visit their page or contact their digital sales department at (+63) 999 886 4262. For leasing concerns, don't hesitate to call (+63) 998 962 7200.