PH inflation slows further, moves closer to target

MANILA  -Inflation softened for the second straight month in November on lower food prices and transport costs, putting the government closer to bringing price growth back to its target.

Inflation, as measured by the consumer price index (CPI), eased to 4.1 percent year-on-year last month from 4.9 percent recorded in October, the Philippine Statistics Authority reported Tuesday.

The latest reading fell within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 4 to 4.8 percent for the month. It also moved closer to the BSP’s 2 to 4 percent target band.

The downtrend in the overall inflation was primarily brought about by the lower year-on-year growth rate of the heavily-weighted food and non-alcoholic beverages at 5.7 percent, from 7 percent in the preceding month.

This was followed by transport with 0.8 percent decrease in November, from 1.0 percent annual growth in October 2023.

The October print is expected to lessen the pressure on the BSP to resume hiking rates. BSP Governor Eli Remolona Jr. had telegraphed to the market that the central bank would “remain hawkish for a while” and stay ready to resume tightening if necessary.