Inflation likely slowed to 3.2% in November — DOF
Stable food prices likely tempered inflation from the previous month’s three-year high.
The Department of Finance (DOF) expects November inflation at 3.2 percent, days ahead of the release of official data from the Philippine Statistics Authority.
In an economic bulletin, the DOF said prices of basic goods and services may have come down from the 3.5 percent posted in October as food prices remained stable. This likely offset the impact of higher fuel and power rates.
“Adequate supply of goods from higher production will further dampen inflation rise in the future. This will likewise temper the rise in interest rates despite the ongoing Fed tightening,” the DOF said.
In particular, the cost of food and non-alcoholic drinks rose at a slower rate of 2.9 percent from 3.6 percent the previous month, while prices of alcoholic beverages and tobacco picked up by 6.2 percent versus 6.8 percent in October.
This cushioned the higher electricity rates which went up to P9.63 per kilowatt hour from P9.28 a month ago, and increases in the prices of diesel and gasoline, the DOF said.