The typhoons that battered parts of the country in October and November caused supply pressures on key food items and logistics that pushed prices higher last month.
Data from the Philippine Statistics Authority on Thursday showed inflation for the month of November hastened to 2.5 percent, faster than the previous month’s 2.3 percent.
This brings the national average inflation rate from January to November to 3.2 percent, the middle of the government’s full-year target range of between 2 and 4 percent.
Claire Dennis Mapa, national statistician and civil registrar general, said the uptrend in the overall inflation in November “was primarily influenced by the faster annual increment in the index of the heavily-weighted food and non-alcoholic beverages at 3.4 percent during the month from 2.9 percent in the previous month.”
“Also contributing to the uptrend was transport with a slower year-on-year decrease of 1.2 percent in October from a 2.1 percent annual drop in the previous month,” Mapa added.
Higher annual increments were also noted in the indices of alcoholic beverages and tobacco; furnishings, household equipment and routine household maintenance; and personal care, and miscellaneous goods and services.
Commodity groups that registered lower inflation rates include clothing and footwear; housing, water, electricity, gas and other fuels; and recreation, sport and culture.
“Food inflation at the national level rose to 3.5 percent in November from 3 percent in the previous month,” Mapa said, adding that the acceleration was primarily brought about by the year-on-year increase in the index of vegetables, tubers, plantains, cooking bananas and pulses.
Faster annual growth rate was also observed in the index of meat and other parts of slaughtered land animals. The oils and fats index also recorded an annual increment from a decline in the previous month.
However, lower annual growth rates were observed in the indices of rice, corn and flour.
“Food inflation shared 48.4 percent or 1.2 percentage points to the overall inflation in November,”
Mapa said.
Core inflation, which excludes selected food and energy items, also increased to 2.5 percent in November from 2.4 percent in the previous month.
Eli Remolona Jr., Bangko Sentral ng Pilipinas (BSP) governor, said the November outturn “is within the BSP’s forecast range of 2.2 to 3 percent.”
“The latest inflation is consistent with the BSP’s assessment that inflation will continue to trend closer to the low end of the target range in the near term. This reflects easing supply pressures for key food items, particularly rice,” Remolona said.
He stressed that the balance of risks to the outlook for 2025 and 2026 has shifted toward the upside and could emanate from the “potential adjustments in electricity rates and higher minimum wages in areas outside Metro Manila.”
Downside factors, meanwhile, continue to be linked to the impact of lower import tariffs on rice.
“The Monetary Board will consider the latest inflation outturn in its upcoming monetary policy meeting on 19 December. The BSP will continue to maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment,” Remolona added.
Arsenio Balisacan, National Economic and Development Authority (NEDA) secretary, said government measures, including productivity-enhancing and strategic trade measures, helped ease inflationary pressures, maintaining the country’s inflation rate within the government’s 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,” he said.
However, Balisacan emphasized the government is closely monitoring prices of commodities, especially food, in the wake of successive typhoons in October and November.
“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.
The government remains optimistic the December inflation figures will sustain the trend of price stability and that inflation will remain within the government’s target range, he added.
“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.
PSA noted inflation in the National Capital Region (NCR) moved at a faster pace in November at 2.2 percent from 1.4 percent in the previous month.
Inflation in areas outside NCR (AONCR) was observed at 2.6 percent which was the same annual rate recorded in October.
Five regions in AONCR exhibited higher inflation rates. Region II (Cagayan Valley) has the highest at 3.4 percent, while Region XII (Soccsksargen), Caraga Region and Bangsamoro Autonomous Region in Muslim Mindanao all recorded the lowest inflation rate of 1.7 percent each.
