November Inflation Surged to 8%

The Philippine Statistics Authority (PSA) released a report stating that last November, inflation quickened to 8% year-on-year. This rate was quicker than the 7.7% previously recorded in the preceding month and the highest since November 2008 during the time of the Global Financial Crisis.

In the BusinessWorld poll, 15 analysts had predicted November’s inflation at 7.8%. The latest rate still falls within the Bangko Sentral ng Pilipinas (BSP) prediction range of 7.4 – 8.2% for the month of November.

According to the economic managers of the Marcos administration, the inflation of forecast would average around 5.8% for 2022, which would mean that the government would fail to hit its annual target of 2 – 4% for 2022.

From January to November of 2022, inflation averaged 5.6%. The PSA stated that food and non-alcoholic beverage prices reached a new milestone, increasing over 10% year-on-year last November from a previous 9.4% in October.

Figures also show that the growth of price was noted to be decreasing in the National Capital Region month-on-month to 7.5% in November owing to lower utility costs. However, prices outside of Metro Manila, specifically for sugar and rice are still increasing.

“We’re seeing the effect of the Christmas season since the prices of butter, condensed milk, and cheese are rising. However, inflation does not always peak in December,” mentioned Divinia Gracia Del Prado, Deputy National Statistician.

However, ING Bank Manila’s economist, Nicholas Antonio Mapa, has stated that inflation is predicted to peak in December because of higher prices of food.

“Demand side pressures remain potent with personal services and restaurants, and hotel inflation accelerating. Second-round effects to keep inflation elevated with prices expected to grind lower next year,”  he says.

Source: Philstar