Headline inflation increased to 1.3 percent year-on-year in November 2019 from 0.8 percent in the previous month and was within the BSP’s expected range of 0.9 – 1.7 percent for the month. The resulting year-to-date average inflation rate of 2.5 percent remained well within the Government’s target range of 3.0 percent 1.0 percentage point for the year. Meanwhile, core inflation�which excludes selected volatile food and energy items to measure underlying price pressures�was steady at 2.6 percent in November from previous month’s level. Likewise, month-on-month seasonally-adjusted inflation was also unchanged at 0.2 percent in November compared to October rate.

The uptick in November headline inflation rate was traced mainly to higher prices of selected food items. Inflation rates for meat, fish, vegetables, as well as milk, cheese, and eggs increased in November compared to year-ago levels. At the same time, year-on-year inflation rates for rice, corn, as well as sugar, jam, honey, chocolate, and other confectionery were also less negative during the month. Meanwhile, year-on-year non-food inflation was unchanged in November as higher actual rentals for housing and upward adjustments in electricity rates due to the increase in generation charge were offset by the lower transport inflation during the month.

The latest inflation outturn remains consistent with the BSP’s prevailing assessment that inflation has bottomed out in October and is expected to gradually approach the midpoint of the target range in 2020 and 2021. The BSP will carefully consider all the latest developments here and abroad at its upcoming monetary policy meeting on 12 December 2019 to ensure that the monetary policy stance remains consistent with the BSP’s price stability objective.

Source: Bangko Sentral ng Pilipinas (BSP)