Stabilizing Economy: Ilocos Region’s Inflation Rate Eases in December 2023

January 8, 2024

In December 2023, the Ilocos Region of the Philippines experienced a notable decline in inflation, easing to 2.3 percent from the previous month’s 2.9 percent. This decrease, primarily attributed to reduced price increases in food and alcoholic beverages, signifies a positive shift in the region’s economic landscape. Sheila de Guzman, the Regional Director of the Philippine Statistics Authority (PSA) in Ilocos, highlighted several factors contributing to this slowdown. These include reduced indices in housing, utilities, furnishings, health, and leisure activities.

The year 2023 marked a significant improvement for the region, with an average inflation rate of 5.1 percent, notably lower than the national average of 6 percent and a substantial drop from the 8.2 percent recorded in 2022. The food index, a critical component, also slowed down to 5.7 percent in December, a decrease from the previous month’s 7.5 percent and significantly lower than the 10.2 percent recorded a year earlier.

While there were increases in other areas such as alcoholic beverages, tobacco, transportation, and personal care, the overall trend indicated economic stabilization. Among the provinces, La Union registered the highest inflation rate in December at 4.1 percent, followed by Pangasinan at 2.7 percent, and Ilocos Norte at 1.2 percent. In contrast, Ilocos Sur reported a negative inflation rate of -1.6 percent, underscoring the varied economic dynamics within the region.

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