Inflation eases to 4.2 percent in November

ABS-CBN News

Posted at Dec 07 2021 09:09 AM | Updated as of Dec 07 2021 10:01 AM

Shoppers go around the Divisoria market in Manila on Sunday, November 14, 2021. The National Capital Region may go on COVID-19 Alert Level 1 by December 1 according to the Inter-Agency task Force on COVID-19. But the agency also warned of another surge if people fail to strictly observe minimum health protocols. Mark Demayo, ABS-CBN News
Shoppers go around the Divisoria market in Manila on Sunday, November 14, 2021. The National Capital Region may go on COVID-19 Alert Level 1 by December 1 according to the Inter-Agency task Force on COVID-19. But the agency also warned of another surge if people fail to strictly observe minimum health protocols. Mark Demayo, ABS-CBN News

MANILA (UPDATE) - Inflation for the month of November decelerated further to a 4-month low of 4.2 percent as some food prices stabilized, the state statistics bureau said Tuesday. 

The consumer price index rose 4.2 percent or at a slower pace compared to the 4.6 percent the previous month, the Philippine Statistics Authority said in a virtual briefing. 

Inflation slowed to a 4-month low of 4.2 percent in November. Data: Philippine Statistics Authority, Processed by: ABS-CBN Data Analytics
Inflation slowed to a 4-month low of 4.2 percent in November. Data: Philippine Statistics Authority, Processed by: ABS-CBN Data Analytics

The figure still breached the upper band of the government target of 2 to 4 percent. The BSP expected inflation for the month to settle at 3.7 percent.

Although inflation for the month is slightly higher than anticipated, it is still projected to fall within target in 2022 and 2023 as supply-side pressures moderate, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in a statement.

Upside risks are linked to weather disturbances and prolonged recovery of domestic food supply as well as strong global demand and persistent supply chain bottlenecks, the central bank said. 

Meanwhile, potential delays in the lifting of local lockdown measures as well as new COVID-19 variants could "dampen" prospects for global and domestic demand and "temper" inflationary pressures, it said.

"The risks to the inflation outlook are on the upside for 2022 but remain broadly balanced for 2023," the BSP said. 

Despite inflation hovering above the target for several months, Diokno has said that the trend remains "transitory" and does not warrant a tightening of monetary policy.

The BSP has kept its benchmark interest rate at a record-low 2 percent for a year now with only 1 monetary policy-setting meeting left for the year. 

Economic managers have said inflation could settle back within the mid-range of the government target by next year.

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