Philippines Headline Inflation Soars to 6.1 Percent in November
Continued Upward Trend Raises Concerns for Central Bank
Nestor Champong December 06, 2023 06:30 AM
The Philippines' headline inflation, which measures the overall increase in prices of goods and services, rose further to 6.1 percent in November 2023, posting the highest inflation rate since October 2018. The latest inflation data suggests that price pressures in the economy remain elevated, despite government efforts to contain inflation.
According to the Philippine Statistics Authority (PSA), the increase in the Consumer Price Index (CPI) was driven by higher prices for food, housing, utilities, and transportation. The food index jumped by 10.2 percent year-on-year, while the housing, water, electricity, gas, and other fuels index rose by 7.4 percent.
The continued rise in inflation is a major concern for the Bangko Sentral ng Pilipinas (BSP), the country's central bank, which has been raising interest rates in an effort to cool inflation. The BSP has raised its key interest rate by a total of 350 basis points since May 2022, bringing it to 5.5 percent.
TheBSPexpectsinflationtorisefurtherinthecomingmonths,butthenbegintomoderateafterthefirstquarterof2024.TheBSPremaincommittedtobringinginflationbackwithintargetrangeof2to4percent.
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