MANILA, Philippines - Inflation eased further to 3.7 percent in November due to slower price increases in the heavily-weighted food and non-alcoholic beverages as well as in housing, water, electricity, gas and other fuels.
In a report, the Philippine Statistics Authority said inflation eased to 3.7 percent in November from 4.3 percent in October and 4.4 percent in September. The November figure is also the lowest since November last year when inflation reached 3.3 percent. Without food or oil prices, core inflation fell to 2.7 percent in November from 3.2 percent in October.
BSP Governor Amando M. Tetangco Jr. said the November inflation figure “makes us poised to meet the 2014 target.”
Last month’s figure brings the 11-month average to 4.3 percent, within the BSP forecast range of 3.5 to 4.3 percent for November.
The central bank has a three- to five-percent target range for inflation this year. Tetangco also added that with lower oil prices in the international markets and a firmer peso, inflation is expected to remain manageable.
Tetangco said the central bank continues to be watchful of developments in the global and domestic fronts and their impact on inflation.
“Over the policy horizon, we will continue to monitor global developments, particularly possible volatility in international commodity prices that could result from current ultra low prices, the growth prospects in the US and EU (European Union), path of normalization in AEs (advanced economies),” Tetangco said.
“On the domestic front, we will monitor how these global developments will affect domestic growth prospects and inflation. We are also watchful for impact of impending natural calamities,” he said.
“We will adjust the stance of policy as necessary to respond to the emerging balance of risks to inflation,” he added.
Looking at inflation by region, the rate in the National Capital Region slid to 2.4 percent in November from 3.6 percent in October. Areas outside the capital, meanwhile, saw the rate decelerate to four percent from 4.5 percent.
By commodity group, the food and non-alcoholic drinks index eased to 6.5 percent in November from seven percent in October, while the housing, water, electricity, gas and other fuels index fell to 0.3 percent from 2.4 percent.
The furnishing and household equipment index also went down to 2.7 percent from 2.8 percent, while the transport index tumbled to 0.2 percent from 0.8 percent.
The decline in these indices were partly offset by the rise in the alcoholic beverages and tobacco index to 4.1 percent from 3.5 percent and the increase in the clothing and footwear index to 3.5 percent from 3.4 percent.
The restaurant and miscellaneous goods and services index also climbed to 1.8 percent in November from 1.7 percent in October.
Meanwhile, the following indices remained steady in November: health (3.5 percent); communication (0.1 percent); recreation and culture (1.5 percent); and education (5.1 percent).