The Philippine Statistics Authority (PSA) reported on Tuesday that the country’s inflation rate rose to 2.5 percent in November. October data showed an inflation rate at 2.3 percent and only 1.1 percent in November last year.
Here are three fast facts on inflation rate rising to 2.5 percent in November.
1. PSA reported through its Inflation Report Consumer Price Index that the increase was attributed to the higher annual increments registered in the indices of alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; and transport.
Alcoholic beverages and tobacco registered an increase of 6.5 percent price index while the housing, water, electricity, gas, and other fuels were at 1.3 percent. Food inflation remained at 3.5 percent and this was attributable to the reduced prices of rice.
National Economic and Development Authority Director-General Ernesto M. Pernia said the reduced prices of rice signaled the recovery of the rice sector from typhoons Karen and Lawin. “We must foster technological advances in agriculture to decrease the susceptibility of our crops to natural calamities,” Pernia said in a statement.
2. Consumer prices in the country were also up by 0.6 percent. PSA said it was due to the price increase of food items such as fish, vegetables, and fruits.
The increase of non-food items such as kerosene, LPG, gasoline and diesel added the uptrend. Transport index also grew by 7.81 percent, making it as the fourth biggest contribution.
3. The Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the inflation rate was beyond the market estimates, but it is still within the official expectations.
“While higher than last October and slightly above the upper end of our forecast range for the month, the November figure brings the year-to-date average to 1.7 percent, still slightly below the lower bound of the national government target range of two to four percent,” The Philippine Star reported Tetangco, as saying.
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