Nov inflation seen at 3.6%

MANILA, Philippines - UK-based Barclays said Philippine consumer prices may have accelerated to a 15-month high in November due to recent typhoons.

In a research note, the bank said inflation could hit 3.6 percent for November from the 2.9 percent recorded in the previous month due to the effects of Typhoons Santi, which hit Northern and Central Luzon in October, and Yolanda, which devastated Eastern Visayas in November.

“Typhoon-related crop damage likely boosted food prices, lifting headline inflation,” Barclays said.

The forecast rate is the highest since inflation hit 3.7 percent in September last year. It is also a sharp rise from the below-three percent monthly inflation the country has seen in the past seven months.

The central bank last week said November inflation could have settled within 3.3 percent to 4.1 percent due to the onslaught of the typhoon.

Bangko Sentral ng Pilipinas Amando M. Tetangco Jr. has said the damage to agricultural production that resulted in supply disruptions will likely push up prices.

He also noted the BSP will continue to monitor factors affecting inflation in line with its mandate of keeping prices stable.

Inflation has so far averaged 2.8 percent as of October, slightly below the central bank target of three to five percent.

The manageable inflation has allowed the BSP to keep policy rates steady since the start of he year and supportive of economic growth.

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