The inflation rate has picked up in November 2019 mainly because of the sharp rise in the prices of alcoholic beverages and tobacco.
This is not to mention that the costs of oil and electricity and prices of basic goods and services are now growing at a rapid rate.
For five straight months now, prices have remained stagnant.
However, the upward movement in prices became apparent in November, ending this slowdown, according to the Philippine Statistics Authority.
Headline inflation has increased by 1.3 percent in November.
This can be categorized as a marked increase from the posted rate of 0.8 percent in October, which was also perceived as a 43-month low.
This high rate of inflation also comes from a high base of six percent compared to the November 2018 rates.
This inflation rate is not a cause of concern, though.
Computations showed that the November 2019 rate brings to the 11-month average to 2.5 percent.
Given that the government’s 2 to 4% target range for the year, this is well within the range.
Bangko Sentral ng Pilipinas’ Governor, Benjamin Diokno, revealed through a text message that the regulatory body’s Monetary Board would evaluate new data and assess possible risks from the higher inflation when they hold the rate-setting meeting on December 12, 2019.
Diokno reassures that the inflation last month was not alarmingly out of bounds.
It was still within the BSP forecast of 0.9 to 1.7 percent.
The PSA Chief, Dennis Mapa, also said the inflation is explanatory and expected. Increased demand during the holiday season plus the excise tax started in July last year made this increase quite inevitable.
Driving the inflation is also the growth of indexes of housing and utilities, which doubled from the October rate (1.2% versus 0.6%).
Health spending also increased to 3.1% from 2.9%.
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