(Manila, 6th – Comprehensive report) Driven by falling food prices, the Philippines’ inflation rate for November dropped to 1.5%, lower than October’s 1.7% and below market expectations of 1.6%, marking the first decline since August this year.
According to data released by the Philippine Statistics Authority on Friday (December 5), the overall inflation rate in November was within the Central Bank’s forecast range of 1.1% to 1.9%, down by 0.2 percentage points from October.
Data shows that the prices of food and non-alcoholic beverages were almost flat in November, with slower rises in the prices of vegetables and meat, effectively offsetting price increases for fish and non-food items driven by higher electricity and transportation costs.
Philippine Socioeconomic Planning Secretary Balisacan said that although there are still multiple challenges at home and abroad, the government’s measures to stabilize food supply and prices have been effective, “fully demonstrating our determination to protect consumers and strengthen economic resilience.”
Analysts believe that moderate inflation will give the Central Bank greater room to continue implementing an accommodative monetary policy.
Philippine Central Bank Governor Remolona revealed that as long as inflation expectations remain stable, the authorities will consider further lowering the benchmark interest rate to support economic growth.
Philippine Central Bank Governor Remolona revealed that as long as inflation expectations remain stable, the authorities will consider further lowering the benchmark interest rate to support economic growth.
The country’s Monetary Board is expected to hold a meeting on December 11, and the market will closely watch whether a new round of rate cuts will be introduced.