MANILA: Philippine annual inflation rose at its slowest pace in 20 months in November, likely easing the pressure on the central bank to keep interest rates higher for longer.
The consumer price index climbed 4.1 per cent in November, the lowest rate of growth since March 2022 and less than the 4.3 per cent forecast in a Reuters poll. Inflation was 4.9 per cent in October.
The data from the Philippine Statistics Authority also showed food inflation was 5.8 per cent in November, the slowest annual rise since May 2022. Decreases in the cost of vegetables offset a gain in rice prices which increased to 15.8 per cent from 13.2 per cent.
November inflation brought year-to-date average inflation to 6.2 per cent, still far above the central bank’s 2 per cent-4 per cent target for the year.
Core inflation, which strips out volatile food and energy costs, was at 4.7 per cent in November versus 5.3 per cent the previous month.
The Bangko Sentral ng Pilipinas, which meets for the last time this year on Dec. 14, kept interest rates steady at 6.5 per cent at its meeting in November, after an off-cycle 25-basis point hike on Oct. 26 amid worries that inflation could spiral out of control.
Source: CNA
