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Philippines: DOF sees inflation easing to 6.3% in November
MANILA, Philippines — Inflation likely eased to 6.3 percent in November from a near 10-year high of 6.7 percent in October as supply of agricultural products, particularly rice, started to normalize last month, according to the Department of Finance (DOF).
In an interview, Finance Undersecretary and chief economist Gil Beltran said its inflation projection is also within the inflation forecast of the Bangko Sentral ng Pilipinas (BSP), which ranges from 5.8 percent to 6.6 percent.
Month-on-month, price increases likely slowed down to 0.07 percent from the 0.3 percent recorded in October, Beltran added.
“We expect that it (inflation) will go down. Month-on-month it will go down to 0.07 percent so year-on-year will be about 6.3 percent. Prices on average have all moved,” Beltran told reporters.
Finance Secretary Carlos Dominguez said the impact of Memorandum Orders 26 to 28 issued by Malacanang last September is already being felt by the public. These issuances removed administrative restrictions on the importation and release of agricultural products to the market.
“The administrative measures that the President ordered in the third week of September are in effect already,” he said.
Beltran said prices of rice, a major contributor to inflation, and vegetables have gone down last November.
On the other hand, he said meat prices are starting to climb up due to high demand during the holiday season.
“Rice prices have gone down, also the vegetables, but the meat is increasing. During Christmas time it will go up,” the DOF official said.
Despite the holiday peak, Beltran said inflation is still expected to trend downwards this December.
“I don’t think it will rise from 6.3 percent, but the month-on-month will surely be almost zero,” he said.
Earlier, the BSP’s Department of Economic Research said inflation likely decelerated last November due to the the sharp decline in petroleum prices, the normalization in the supply conditions of rice and other agricultural commodities, and the peso appreciation.
However, it said the easing could be offset in part by the adjustments in jeepney and bus fares, as well as higher electricity rates in Meralco-served areas.
Inflation last October steadied at a near-decade high of 6.7 percent, bringing the year-to-date average inflation to an average of 5.1 percent.
According to the latest assessment of the BSP’s Monetary Board, inflation is projected to average 5.3 percent this year before easing to 3.5 percent next year.
Source: https://www.philstar.com/business/2018/12/03/1873640/dof-sees-inflation-easing-63-november#wF7ZZG8lXd4SV6tx.99