Philippine inflation slows further, moves closer to target

inflation

MANILA: Inflation softened for the second straight month in November on lower food prices and transport costs, putting the government closer to bringing price growth back to its target.

Inflation, as measured by the consumer price index (CPI), eased to 4.1 per cent year-on-year last month from 4.9 per cent recorded in October, the Philippine Statistics Authority reported Tuesday.

The latest reading fell within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 4 to 4.8 per cent for the month. It also moved closer to the BSP’s 2 to 4 per cent target band.

The downtrend in the overall inflation was primarily brought about by the lower year-on-year growth rate of the heavily-weighted food and non-alcoholic beverages at 5.7 per cent, from 7 per cent in the preceding month.

This was followed by transport with 0.8 per cent decrease in November, from 1.0 per cent annual growth in October 2023.

The October print is expected to lessen the pressure on the BSP to resume hiking rates. BSP Governor Eli Remolona Jr. had telegraphed to the market that the central bank would “remain hawkish for a while” and stay ready to resume tightening if necessary. - Philippine Daily Inquirer/ANN