December inflation at 2-year high

CEBU, Philippines -  Philippine inflation jumped its highest in two years as all commodity groups tracked by the National Statistics Office registered higher annual increases, except communication, recreation and culture, and education.

On Tuesday, the Statistics Office said inflation quickened to 4.1 percent in December from 3.3 percent in November and from 3.3 percent a year earlier.

"This was the highest inflation since December 2011," NSO said.

However, the annual average headline inflation for 2013 slowed down to 3.0 percent from 3.2 percent in 2012, the NSO noted.

In a separate statement also Tuesday, the National Economic and Development Authority (NEDA) said the devastation caused by Super Typhoon Yolanda (Haiyan) pushed inflation in the Philippines.

Economic Planning Secretary Arsenio Balisacan, who is also the NEDA secretary general, said major food items rose across the board, especially in storm-hit areas.

Yolanda lashed the Central Philippines in November, leaving 8,000 people dead and missing and more than four million homeless. It also destroyed key infrastructure, which led to gridlocks that resulted in artificial supply crunches, the government said.

"Almost all food items in the average consumer basket increased, which can be mainly attributed to the impact of Typhoon Yolanda," Balisacan said in a statement.

"Some food items even reached double-digit inflation in the areas hardest hit by the typhoon," he added.

He said December's inflation was the highest since the 4.2 percent registered in December 2011.

However, full-year inflation averaged 3.0 percent, which is at the low end of the government's 3.0-5.0 percent target.

Balisacan said that adding to inflation pressures were an uptick on oil prices as well as a 40 percent hike in generation charges imposed by Manila Electric Co., which distributes power to Manila and its surrounding provinces. (FREEMAN)