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Inflation slows down to 4.2% in November — PSA
By JON VIKTOR D. CABUENAS,GMA NewsThe growth of the average prices of basic goods and services slowed down in November, the Philippine Statistics Authority (PSA) reported on Tuesday.
In a virtual briefing, the PSA said inflation — or the rate of increase in commodity prices — clocked in at 4.2% last month.
November's inflation print is slower than the 4.6% recorded in October
. Average inflation from January to November 2021 is at 4.5%, the PSA said."Ang dahilan ng pagbagal ng antas ng inflation nitong Nobyembre 2021 ay ang mas mabagal na paggalaw ng presyo ng Food and Non-Alcoholic Beverages na may 3.9 % inflation at 93.2 % share sa pagbaba ng pangkalahatang inflation sa bansa," PSA National Statistician Dennis Claire Mapa said.
(The reason for inflation's deceleration in November 2021 is the slower movement in the prices of Food and Non-Alcoholic Beverages, which has a 3.9% inflation at 93.2% share in the decrease in the overall inflation.)
The latest figures reflect the third straight month that inflation decelerated, with vegetable, fish, and meat inflation recording a decline from the previous year.
The month-on-month increase of the seasonally adjusted consumer price index for all items also slowed to 0.5% in November from 0.9% in October 2021.
Slower monthly increments were noted in non-food; housing, water, electricity, gas, and other fuels; furnishing, household equipment, and routine maintenance of the house; health; recreation of culture and education; and restaurant and miscellaneous goods and services.
The monthly uptick was higher in the food and non-alcoholic beverages, while clothing and footwear was unchanged.
Inflation in the National Capital Region (NCR) accelerated to 0.4% from 0.3% the previous month, while inflation outside the NCR (AONCR) accelerated to 0.5% from 0.2%.
“Pork prices continuously went down month-on-month from July to early-October. This means that our policy to temporarily import pork has been effective,” Socioeconomic Planning Secretary Karl Kendrick Chua said separately.
“However, the uptick in prices in November shows that we need to further ease administrative requirements for the unloading and distribution of stocks to encourage more importation and help bring back pork prices to their pre-African Swine Fever level,” he added.
Albay Representative Joey Salceda, who is also an economist, said "inflation is likely to slow down further in December, but to a lesser degree than the deceleration this month, due to a spike in consumer demand."
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"Supply chain management and logistics – and the rules that govern them – will be key to this development. By loosening transport restrictions further, together with the aggressive national vaccination drives, inflation slowdown should continue to January 2022," he said.
Salceda, chairperson of the House committee on ways and means, said the latest inflation report was a "positive news for growth and economic recovery."
"Typically, high inflation tends to slow down job growth, which in turn, reduces overall productivity. It also comes at a welcome time, since incomes are beginning to recover with the reopening of the economy," he said.
"Low inflation induces more aggregate spending, which is also welcome news during the holiday season," he added.
According to the lawmaker, the threats to agriculture and food supply will be key factors in overall prices in 2022.
"If fertilizer and corn prices continue to increase next year, expect meat inflation and overall food prices to remain elevated," Salceda said.
President Rodrigo Duterte on May 10 issued Executive Order 133 which raised the MAV of pork imports to 254,210 metric tons (MT) from 54,210 MT.
Duterte in April also signed EO 128, which reduced the tariff rates on imported pork to 5% to 20% from the previous rates of 30% to 40%. Foregone revenues from the tariff reduction are estimated at P1.3 billion, and could reach P11.2 billion this year.
Moving forward, Chua said the National Economic and Development Authority (NEDA) recommends further increasing capacity for all transport types to boost the economic recovery.
“Enhancing people’s mobility while observing health protocols is crucial as we sustain our economic recovery amid the threat of the Omicron variant,” he said.
“As restrictions ease, we recommend increasing public transport capacity to 100% as vaccination rates increase to reduce crowding in terminals and help protect commuters and drivers from future oil price shocks,” he added. — with a report from Anna Felicia Bajo/KBK/VBL, GMA News