- November inflation driven by food, transport prices
- Central bank to consider November inflation in monetary policy meeting on Dec. 19
- Risks to inflation outlook include electricity prices, wage hikes
MANILA (Updated 1:08 p.m.) — The Philippine central bank said on Thursday it will take a “measured approach” in its easing cycle as inflation slightly accelerated for a second straight month in November.
READ: Philippines annual inflation at 2.5% in November
The consumer price index (CPI) rose 2.5% in November from 2.3% the previous month as a slew of typhoons last month pushed food prices higher. Inflation has averaged 3.2% for the year, within the central bank’s 2% to 4% target range for 2024.
Faster increases in food and non-alcoholic drink prices and a slower decrease of transport prices were the main drivers on inflation for the month, the statistics agency said.
Economists in a Reuters poll had expected annual inflation of 2.5% in November, within the central bank’s forecast of 2.2% to 3.0% for the month.
Core inflation, which strips out volatile food and energy items, was 2.5% last month, up slightly from 2.4% in October.
The Bangko Sentral ng Pilipinas (BSP) said in a statement it will consider the latest inflation data when it meets to review policy rates for the final time this year on Dec. 19.
“The BSP will continue to maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment,” it said.
Risks to the inflation outlook have shifted to the upside for next year and 2026 due to likely higher electricity prices and wage hike mandates for workers outside the capital region.
The central bank cut interest rates by 25 basis points for a second straight meeting on Oct. 16, bringing its benchmark rate to 6%, the lowest since February 2023.
BSP Governor Eli Remolona said last month a third cut was likely either at the central bank’s December meeting or at its first meeting next year. Further cuts beyond that could also be expected in 2025, he said.
Six storms hit the typhoon-prone country from late October through November, inundating rice and vegetable fields, and damaging crops and hurting harvests.
—Reporting by Neil Jerome Morales and Mikhail Flores; Editing by John Mair, Kim Coghill and Tom Hogue