Inflation rate seen to ease this year
A lawmaker has expressed optimism that inflation will ease in 2023 into “more acceptable levels.” Rep. Joey Salceda, chair of the House ways and means panel, noted that food prices were “structural,” as he cited the high prices of red onion as proof that there were “broader systemic issues” with food trade and production.
Salceda said oil and energy prices might stabilize this year, which would also affect transport costs. “There is good reason to believe that oil, transport and energy prices will be cheaper, or at least not inflate as quickly as they did in 2021 and 2022.
Leading projections indicate a supply surplus starting the first quarter of 2023, as demand slows down and the United States and other non-Organization of the Petroleum Exporting Countries try to undercut the global cartel,” Salceda said. “Food inflation remained the biggest contributor to December 2022 inflation at 10.2 percent, and it is extremely alarming,” he said.
Inflation hit 8.1 percent on December, or a full year average inflation of 5.8 percent in 2022.