Inflation up 2.5% in November

CEBU, Philippines - Consumer prices rose 2.5 percent in November, the fastest pace so far this year, breaching the central bank's 1.6-2.4 percent forecast for the month.

"This was attributed to higher annual increments registered in the indices of alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; and transport," the Philippine Statistics Authority said yesterday.

The September inflation was up from 2.3 percent a month ago and 1.1 percent in November 2015.

The November figure brought the 11-month average to 1.7 percent, still below the 2-4 percent target of the Bangko Sentral ng Pilipinas for the year. 

"Excluding selected food and energy items, core inflation picked up 2.4 percent in November 2016. Last month, it was recorded at 2.3 percent and in November 2015, 1.8 percent," PSA said.

The uptick in consumer prices was also attributed to higher price mark-ups in food items particularly fish, vegetables and fruits.

"Also contributing to the uptrend were higher charges in electricity rates and general upward adjustments in the prices of alcoholic beverages, cigarettes and petroleum products such as kerosene, LPG, gasoline and diesel," PSA noted.

Full-year inflation for 2016 is expected to be slightly lower than the government’s inflation target of 2-4 percent.

However, international and domestic risks are tilted to the upside from a possible rally in oil prices, depreciation of the peso against the US dollar, and pending petitions for electricity rate increases, the National Economic and Development Authority had said.

Inflation is expected to remain stable for the rest of the year with the continuous expansion of the domestic economy, solid private household consumption and investment, buoyant business and consumer sentiment, and adequate credit and domestic liquidity. (FREEMAN)