Inflation, the rate of increase in prices of consumer goods and services over a certain period, edged up to 2.5 percent in November, from 2.3 percent in October, largely driven by higher food prices resulting from supply bottlenecks caused by recent typhoons, the Philippine Statistics Authority reported on Thursday.
This November figure aligns with forecasts from the Bangko Sentral ng Pilipinas and private analysts, marking the highest inflation reading in three months. While many had predicted inflation would stay at around 2.4 percent, the November uptick underscores the impact of climate change on the supply chain.
The BSP had earlier projected the consumer price index to move between 2.2 and 3.0 percent for the month.
Core inflation, which excludes volatile food and energy items, edged up slightly to 2.5 percent from 2.4 percent in October, but it remains far below the 4.7 percent recorded in November 2023.
Economic Planning Undersecretary and National Statistician Claire Dennis Mapa explained that the recent increase in food prices, particularly fruits and vegetables, was primarily due to the series of typhoons that affected the country. “The good news is that rice inflation has eased to 5.1 percent in November, down from 9.6 percent in October,” Mapa said. However, vegetable prices surged in November due to storm damage, reversing a previous trend of slower price increases.
Food inflation climbed to 3.5 percent in November, up from 3.0 percent in October, but it was still significantly lower than the 5.8 percent recorded in November 2023. Despite the uptick in food prices, Mapa noted that efforts by the Department of Agriculture to bring rice prices down should ease inflation further in December.
“For households, particularly the bottom 30 percent of income earners, the decline in rice prices is good news,” Mapa added. Inflation for the lowest-income households dropped to 2.9 percent in November, down from 3.4 percent in October and 4.9 percent in November 2023.
The latest inflation data brings the average inflation rate for the January-November period to 3.2 percent, well within the BSP’s target range of 2.0 to 4.0 percent. This provides the central bank with the flexibility to further ease monetary policy during its scheduled meeting on Dec. 19 to support economic growth. The BSP had earlier lowered benchmark interest rates and significantly reduced banks’ reserve requirements to release more funds for borrowers.
