Inflation likely bottomed out in November to hit a higher 0.8 percent, according to the Department of Finance’s chief economist.
“The inflation rate for November may reach 0.8 percent, double the price increase last month, suggesting that inflation may have already bottomed out after hitting the record low of 0.4 percent in the previous couple of months,” Finance Undersecretary Gil S. Beltran said in an economic bulletin this week.
“The higher rate of increase in the general prices may be traced to the slower deceleration in the housing and utilities group and a modest rise in food prices,” Beltran added.
While this month’s inflation was likely higher than those in the preceding months, Beltran pointed out that the projected rate remained below the Cabinet-level, interagency Development Budget Coordination Committee’s target of 2-4 percent for 2015.
Based on the DOF’s calculations, the rate of increase in the prices of food and non-alcoholic beverages likely rose to 1.1 percent this month from 0.7 percent in October.
Also higher than a month-ago levels were the inflation rates for the following commodity groups: clothing and footwear; furnishings and household equipment; transport, and recreation and culture.
Electricity prices also inched up in Metro Manila this month, as Manila Electric Co.’s (Meralco) rate per kilowatt-hour (kWH) for a 300-kilowatt per month consumption slightly increased to P8.87 from P8.74 in October, Beltran noted. Also, Meralco’s generation charge per kWH gained eight centavos, at P4.08 in November, compared to P4 last month.
Diesel prices nonetheless slipped to P25.79 a liter from P26.89 per liter a month ago, DOF data showed.
Last month, Beltran said the DOF was backing up government plans to import more rice in order to ensure enough supply amid the onslaught of El Niño, in a bid to keep at bay the risks to inflation posed by the prolonged drought.
“The government should be more aggressive in improving agricultural infrastructure (repair and construction of irrigation systems and farm-to-market roads), importation of rice, cloud seeding operations to sustain ample supply of key food items to counter the effects of El Niño which threatens to reverse low inflation environment,” Beltran said in a DOF economic bulletin released last October.
The National Economic and Development Authority (Neda) was seeking President Aquino’s go-ahead to import more rice in early 2016 to keep prices stable amid El Niño, which was expected to last until June next year and could peak between December and February.