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Philippines: Inflation rises in November

Staff Writer |
In November, consumer prices rose 0.6% from the previous month, accelerating from October’s 0.2% increase and recording the highest result since January 2014.

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The rise mainly reflected higher prices for food and non-alcoholic beverages as well as for alcoholic beverages and tobacco.

Inflation was 2.5% in November, which was up from October’s 2.3% and the highest result since February 2015. Annual average inflation inched up to a 13-month high of 1.7% from the 1.6% recorded in October.

Annual average inflation is an important indicator as the Central Bank uses it as a guide for monetary policy, with an inflation target for the 2016–2018 period set at 3.0% plus/minus one percentage point.

Core consumer prices, which exclude volatile items such as foodstuffs and oil, rose 0.4% in November from the previous month, up from October’s 0.1% rise. Finally, core inflation in November was 2.4%, marginally higher than October’s 2.3%.

FocusEconomics Consensus Forecast panelists expect annual inflation to average 1.7% in 2017, which is down 0.1 percentage points from last month’s projection. For 2018, panelists see average inflation of 2.8%.