November inflation highest in 9 months

MANILA, Philippines - Prices of goods and services hit a nine-month high in November, rising at 3.3 percent from the 2.9 percent in October, the National Statistics Office (NSO) said.

The inflation for November brings the average inflation for the first 11 months of the year to 2.8 percent, well below the 3- to 3.5-percent target of the government. It is also at the lower end of the central bank's 3.3- to 4.1-percent forecast. A year ago, inflation hit 2.8 percent.

Higher annual increment in the indices of food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; furnishing, household equipment and routine maintenance of the house and transport contributed to the uptick, the NSO said.

Annual inflation in the National Capital Region (NCR) similarly jumped from 1.1 percent in October to 1.9 percent in November. Areas outside the NCR, meanwhile, saw prices jumping by 3.8 percent from the 3.4 percent previously recorded.

"Higher charges in electricity rates and mark-ups in the prices of the heavily-weighted food items particularly meat, fish, fruits and vegetables raised the overall monthly consumer prices by 0.4 percent. Price increments in LPG and some construction materials were also noted in selected regions," NSO noted.

Bangko Sentral ng Pilipinas Governor Amando Tetangco, Jr. said the recent calamity caused by typhoon Yolanda will contribute to a continuous rise in the prices of goods and services in the coming months.

"Nevertheless, as experience in past natural calamities have taught us, we do not see these effects persisting,” he said.

For 2015, Tetangco said the government's inflation target is between 2 and 4 percent.

“Policy settings therefore remain appropriate but we stand ready to make adjustments as and when needed to address unforeseen developments,” Tetangco added.