Inflation faster in November but rice prices easing — PSA

Metro Manila, Philippines — The rate of price increase on goods and services rose faster in November than in October with food as the main driver, the statistics office reported on Thursday, Dec. 5.

The 2.5% inflation brought the average 11-month rate to 3.2%, data from the Philippine Statistics Authority (PSA) showed. October inflation was 2.3%

Economic managers have set a 3.1%-3.3% inflation target for 2024.

Food and non-alcoholic beverages were major contributors to the higher inflation, having half of the share.

Poultry and swine meat had a rate of 5.4% and 4.2%, respectively.

The vegetable commodity group posted faster inflation at 5.9% from a 9.2% contraction in October.

“Nakita natin sa lahat ng rehiyon outside NCR (National Capital Region), Region 2 (Cagayan Valley) ang mataas ang inflation noong nakaraang buwan. Naapektuhan ‘yong ating supply ng gulay,” National Statistician Dennis Mapa told a news conference.

“Ganun palagi kapag may mga baha, malalakas na bagyo, and that created a spike on the prices,” Mapa said.

[Translation: Outside NCR, we saw that Region 2 had a high inflation rate in the previous month. Our vegetable supply was hit, a likely scenario after floods, strong typhoons. That created a spike in prices.]

Rice mainly pushed the inflation print, but Mapa said prices of the staple have eased.

In November, rice inflation was at 5.1%, down from 9.6% in October, and even lower than September’s 5.7%. Mapa previously said the October rate was a “blip.”

“Ang aming expectation for December talagang pababa ang inflation rate para sa bigas, which is good news for households,” Mapa said.

[Translation: We expect in December that the rice inflation rate will go down, which is good news for households.]

The rice tariff cut in July was expected to reduce retail prices.

Mapa said regular milled rice has an average price of P49.24 per kilogram (kg) in November from P50.22/kg in October; well-milled rice at P54.64/kg from P55.22/kg; and special rice at P63.72/kg from P63.97/kg.

In November last year, the average price for regular milled rice was P46.73/kg, well-milled rice at P51.99/kg, and special rice at P61.47/kg, he said.

Other major contributors to the November inflation rate were housing, water, electricity, gas and other fuels at 1.9%, and restaurants and accommodation services at 3.9%.