La Union’s headline inflation rate accelerated to 4.9 percent in December 2022 from 4.4 percent in the previous month. This brings the province’s average inflation from January to December 2022 at 3.7 percent.  This is the highest inflation rate reported in the province for 2022.  Inflation in December a year ago was lower at 1.9 percent. (Table A and Figure 1)

The faster pace in the province’s overall inflation in December 2022 than in November 2022 was primarily brought about by the higher annual increase in the index of the heavily weighted food and non-alcoholic beverages at 5.9 percent, from 4.7 percent in the previous month.   This was followed by housing, water, electricity, gas and other fuels with inflation rate of 5.7 percent from 4.5 percent in November 2022; and personal care, and miscellaneous goods and services with inflation rate of 3.1 percent in December 2022 from 2.9 percent in November 2022.

On the contrary, lower annual increment was noted in the health index at 1.5 percent in December 2022, from 1.8 percent in November 2022.  Slower annual growth rates were also observed in the transport index at 15.0 percent in December 2022, from 15.1 percent in November 2022; and recreation, sport and culture index at 2.0 percent in December 2022, from 2.6 percent in the previous month. 

Meanwhile, the annual inflation remained in the indices of alcoholic beverages and tobacco at 4.2 percent; clothing and footwear at 0.7 percent; furnishings, household equipment and routine household maintenance at 1.4 percent; education services at
-0.4 percent; and restaurants and accommodation services at 0.4 percent. The annual inflation in the indices of information and communication, and financial services remained at zero growth. 

At the provincial level, food inflation accelerated to 5.9 percent in December 2022, from 4.7 percent in November 2022.  In December 2021, food inflation was recorded at 0.2 percent.

Higher annual inflation in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 35.0 percent; rice at -2.3 percent; and fruits and nuts at 1.3 percent were the main contributors to the increase in the December 2022 food inflation in the province. 

Moreover, faster annual inflation during the month were noted in the indices of the following food groups:

1. Flour, bread and other bakery products, pasta products, and other cereals, 5.6 percent;

2. Oils and fats, 11.7 percent; and

3. Sugar, confectionery and desserts, 46.7 percent.

On the contrary, slower annual growth rates were observed in the indices of the following food groups in December 2022:

1. Meat and other parts of slaughtered land animals, 1.9 percent;

2. Fish and other seafood, 1.1 percent;

3. Milk, other dairy products, and eggs, 7.1 percent; and

4. Ready-made food and other food products not elsewhere classified (n.e.c), 5.4 percent.

Meanwhile, the annual inflation for the corn index remained at its previous month’s rate of 17.9 percent.

SGD. DANITES E. TEÑIDO, Ph.D.
Chief Statistical Specialist

/MMAAA