The inflation rate in November likely slowed to 3.2 percent from its intra-year high of 3.5 percent last October owing mainly to more stable food prices after last month’s weather disturbance, the Department of Finance (DOF) said.
In an economic bulletin, the DOF said the stable prices of food might offset the faster increases in the prices of fuel and power rates for the month.
Despite the expected faster price increases, the DOF remained optimistic that the country’s strong fundamentals, as shown in the manageable inflation levels, would help sustain rapid growth and investment in the country.
“Adequate supply of goods from higher production will further dampen inflation rise in the future. This will likewise temper the rise in interest rates despite the ongoing Fed tightening,” the DOF said.
The DOF projected that all commodity groups likely registered slower increments in prices of 3.2 percent in November compared to the 3.5 percent a month ago.
Increase in the prices of food and non-alcoholic beverages are seen to be lower at 2.9 percent from 3.6 percent; alcoholic beverages and tobacco, 6.2 percent from 6.8 percent; and education, 2.2 percent from 2.3 percent.
Meanwhile, other commodity groups are expected to post slight increases in prices for the month such as housing, utilities and fuels, 4.2 percent from 4 percent in October; furnishings, household equipment, 1.9 percent from 1.8 percent; recreation and culture, 1.6 percent from 1.5 percent; and restaurant and miscellaneous services, 2.7 percent from 2.6 percent.
Meanwhile, increases in the prices of clothing and footwear (1.9 percent), health (2.2 percent), transport (4.2 percent), and communication (0.4 percent) are expected to stay at the same level.
The DOF data also showed that the Meralco rate per kilowatt hour (kWh) for households consuming 200 kWh per month in November increased to P9.63 from P9.28 a month ago. Also, the price of diesel per liter increased to P35.37 from P34.51 in the National Capital Region (NCR).
The price of gasoline per liter in the NCR also went up to P48.44 from P46.89 a month ago.