Consider some of the recently released data.

According to the Philippine Statistics Authority, the

inflation rate in December rose by 8.1 percent on annual basis from 8.0 percent the previous month.

Although it is the highest in 14 years, it is lower than the Bangko Sentral ng Pilipinas (BSP) target band
that inflation in December could peak at 7.8 to 8.6 percent. The 8.1 percent inflation in December also
brought the actual full-year average at 5.8 percent, which is also on point with BSP’s previously
announced 2022 average forecast of 5.8 percent.

The BSP, whose policy is anchored on inflation targeting, said that the latest 8.1 percent inflation is
consistent with its assessment of elevated inflation that will hit its high in December before slowing
down in 2023. This means the pace of growth in prices of goods is decelerating. For 2023, the BSP
forecasts inflation at 4.5 percent, still above the 2-4 percent target. By 2024, the forecast is 2.8 percent.

Another positive economic indicator is what the PSA reported on Friday, Jan. 6, that the level of
unemployment in the country dropped to 4.2 percent last November from 6.5 percent in the same
month a year ago. It is also down from 4.5 percent in October.