By Luisa Maria Jacinta C. Jocson, Reporter
Although headline inflation may have escalated in November, it still remained within the 2-4% target range, according to the Bangko Sentral ng Pilipinas (BSP).
The central bank’s forecast for the upcoming month indicated that inflation likely ranged between 2.2% and 3% in November, which is a slowdown compared to the 4.1% recorded during the same month last year.
Nevertheless, the upper limit of this forecast reflects a quicker pace than the 2.3% noted in October.
The Philippine Statistics Authority (PSA) plans to disclose the inflation figures for November on December 5.
“Rising costs of vegetables, fish, and meat due to adverse weather conditions, elevated electricity charges and fuel prices, along with the depreciation of the peso are the main contributors to upward price pressures this month,” the BSP stated.
This month, the Philippines encountered multiple storms. Recent data from the Agriculture department revealed that damages to the agricultural sector from tropical cyclones Nika, Ofel, and Pepito reached P785.68 million.
In November, adjustments in fuel prices recorded a net rise of P1.7 per liter for gasoline, P3.2 per liter for diesel, and P1.6 per liter for kerosene.
Manila Electric Co. (Meralco) also increased the overall rate by P0.4274 per kilowatt-hour (kWh), raising it to P11.8569 per kWh in November from P11.4295 per kWh in October.
The peso dropped to the P59-per-dollar level twice this month, reaching its lowest point on November 21 and 26.
The BSP previously attributed this decline to the stronger dollar in light of escalating geopolitical tensions.
Conversely, potential risks to the inflation outlook are expected to be mitigated by lower rice prices, the central bank noted.
National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan stated on Friday that inflation is projected to “remain comfortably” within the 2-4% target range.
“We don’t anticipate that the (November) figure will exceed our target of 2-4%,” he remarked, although he acknowledged that any rise in prices would be “minimal.”
Mr. Balisacan also highlighted that the BSP’s easing cycle will bolster economic performance.
“We foresee that the BSP’s choice to lower policy rates by a total of 50 basis points and to reduce reserve requirements will enhance liquidity, thus fostering growth in private spending,” he said.
“Specifically concerning substantial consumer purchases and investments in capital-heavy infrastructure in the forthcoming quarters, which we view as another important driver of economic growth.”
The BSP affirmed that it “will persist in adopting a cautious approach to ensure price stability that is conducive to balanced and sustainable economic growth and employment.”
Since August, the central bank has lowered borrowing costs by 50 basis points, bringing the key rate down to 6%.