PH inflation slightly higher at 2.5% in November

Philippine headline inflation settled at 2.5% in November, slightly higher than the 2.3 percent seen in October.

In a briefing, PSA Undersecretary and National Statistician Dennis Mapa said inflation in November last year was higher at 4.1%.
The latest data brought the year-to-date average inflation to 3.2%, which is within the government’s 2% to 4% target range.

“Despite the strong typhoons our country faced in recent months, consumer prices have remained relatively stable. This demonstrates the resilience of our economy and the effectiveness of our policies,” said NEDA Secretary Arsenio Balisacan.
Balisacan, however, said the government is closely monitoring prices of commodities, especially food, following the successive typhoons in October and November.

These typhoons adversely affected food supply and logistics, resulting in a rise in food inflation to 3.5% from 3%, with vegetable inflation accelerating to 5.9% from -9.2% deflation in October.

A big decline was recorded in rice inflation, dropping to 5.1% in November from 9.6% in October.
The PSA expects rice inflation to further decline in the coming months.

“We are committed to maintaining price stability by ensuring inflation remains low and manageable. This will be supported by prudent monetary policies and strategic trade measures in the near term, as well as improved access to quality job opportunities and productivity-enhancing reforms in the medium term” said Balisacan.

Balisacan said the government is optimistic that the December inflation figures will sustain the trend of price stability and that inflation will remain within the government’s target range.

For this year, the full-year inflation is projected to average between 3.1% and 3.3%, significantly lower than last year’s average inflation rate of 6%.

“Through the timely and strategic use of our various policy levers, a whole-of-government and whole-of-society approach is vital to sustain our momentum in effectively managing inflation. Achieving this objective will be key to making economic growth more inclusive and accelerating our poverty reduction efforts,” Balisacan said.