The Philippines’ inflation rate slowed to 4.1% in November, a welcome respite from the year-high 8.7% it reached in January. The decline in inflation is attributed to moderating food prices and lower transport costs due to falling fuel prices.
The November inflation rate falls within the Bangko Sentral ng Pilipinas’ (BSP) target range of 4% to 4.8%. However, the 11-month average inflation still remains elevated at 6.2%, above the government’s target.
The main drivers of the decline in inflation were food and transport costs. Food inflation slowed to 5.7% in November from 7% in October, while transport inflation fell by 0.8% compared to a 1% increase in October.
Core inflation, which excludes volatile food and energy items, also eased to 4.7% in November from 5.3% in October. The average core inflation for the first 11 months of the year stood at 6.8%.
Despite the recent slowdown, inflation remains a pressing concern for many Filipinos. A Pulse Asia survey conducted in September revealed that inflation topped the list of most urgent issues for the country’s citizens.
The BSP has expressed confidence that inflation will gradually return to the target range within the first half of 2024. However, the central bank remains vigilant and will continue to monitor inflation closely to ensure price stability.
Source: PhilNews24 | December 5, 2023
