Philippines inflation rate hits 20-month low

December 05, 2023

Manila, Dec 5

The Philippine Statistics Authority (PSA) on Tuesday said that year-on-year inflation in the country further eased to 4.1 per cent in November, the lowest since March 2022, mainly due to lower food prices.

The November inflation rate, down from 4.9 per cent in October, brought the national average inflation from January to November this year to 6.2 per cent. In November 2022, the inflation rate was higher at 8 per cent.

In a press conference, PSA's head Dennis Mapa said the drop in the overall inflation in November 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 in November from 7 per cent in October.

Mapa said the restaurants and accommodation services, which slowed to 5.6 per cent in November from 6.3 per cent in the previous month, also contributed to easing the overall inflation rate in November.

Core inflation, which excludes selected food and energy items, decreased to 4.7 per cent in November from 5.3 per cent in October.

The average core inflation for January to November stood at 6.8 per cent.

"The government needs to monitor the inflation situation in the face of continued price pressures coming from geopolitical tensions and extreme weather situations, further fueling uncertainty," National Economic and Development Authority Secretary Arsenio Balisacan said.

Citing data from the state weather bureau, Balisacan warned: "A strong El Nino is already present in the country and is projected to intensify in the coming months until the second quarter of 2024.

"This could bring below-normal rainfall across the country and disrupt food production and energy generation."



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