THE Department of Finance said Friday the inflation rate in November likely decelerated to 3.2 percent from its intra-year high of 3.5 percent in October due to more stable food prices after last month’s weather disturbance.
The DoF said in an economic bulletin the stable prices of food might offset the faster increases in the prices of fuel and power rates for the month.
Despite the expected faster price increases, the DoF remained optimistic the country’s strong fundamentals, as shown in the manageable inflation levels, would help sustain rapid growth and investment in the country.
“Adequate supply of goods from higher production will further dampen inflation rise in the future. This will likewise temper the rise in interest rates despite the ongoing Fed tightening,” the DoF said.
The DoF projected that all commodity groups likely registered slower increments in prices of 3.2 percent in November compared with 3.5 percent a month ago.
The increase in the prices of food and non-alcoholic beverages is seen to be lower at 2.9 percent from 3.6 percent; alcoholic beverages and tobacco, 6.2 percent from 6.8 percent; and education, 2.2 percent from 2.3 percent.
Meanwhile, other commodity groups were expected to post slight increases in prices for the month such as housing, utilities and fuels, 4.2 percent from 4 percent in October; furnishings, household equipment, 1.9 percent from 1.8 percent; recreation and culture, 1.6 percent from 1.5 percent; and restaurant and miscellaneous services, 2.7 percent from 2.6 percent.
Meanwhile, increases in the prices of clothing and footwear (1.9 percent), health (2.2 percent), transport (4.2 percent), and communication (0.4 percent) are expected to stay at the same level.
The DoF data also showed that rate of Manila electric Co. per kilowatt hour for households consuming 200 kWh per month in November increased to P9.63 from P9.28 a month ago. Also, the price of diesel per liter increased to P35.37 from P34.51 in the National Capital Region.
The price of gasoline per liter in the NCR rose to P48.44 from P46.89 a month ago.
Earlier, the Bangko Sentral ng Pilipinas said inflation in November likely accelerated to 3.6 percent from 3.5 percent a month ago due mainly to higher fuel prices and power rates for the month.
In a statement, the BSP Department of Economic Research projected the November inflation to settle within the 2.9-percent to 3.6-percent range.
“Higher domestic petroleum prices and electricity rates in Meralco-serviced areas could contribute to upward price pressures, which could be partly offset by the slightly stronger peso for the month,” it said.
