Philippine inflation up to 2.5 percent in November

Philippine inflation rate rose to 2.5 percent in November due to the increase in the prices of major non-food commodities, the National Economic and Development Authority (NEDA) said Tuesday.

Inflation in November last year was at 1.1 percent, while in October, 2.3 percent. Year-to-date, inflation was at 1.9 percent, within the government's official target of 2.0 to 4.0 percent.

"The increase in inflation can be attributed to the increase in domestic prices of petrol products, which comprise the bulk of the non-food commodity basket usually purchased by the average Filipino household," said Socioeconomic Planning Secretary Ernesto M. Pernia.

Non-food inflation increased due to the uptick of prices in all major non-food items such as housing, water, electricity, gas and other fuels, and transport.

Meanwhile, food inflation remained unchanged in November 2016 at 3.5 percent, with rice prices breaking its five-month long increasing trend and corn prices continuing in its downward trend since August.

"The decrease in rice prices signals the recovery of the rice sector from the devastation of typhoons Karen and Lawin. We must foster technological advances in agriculture to decrease the susceptibility of our crops to natural calamities," Pernia said.

He said the government expects the full year inflation for 2016 to be well within the target.

"The overall balance of risks is tilted on the upside, with supply-side factors as the main contributor to price adjustments," said Pernia.

He explained that international and domestic risks are tilted upward from a possible rally in oil prices, depreciation of the peso against the U.S. dollar, and pending petitions for electricity rate increases. Endit