DOF expects inflation to stay manageable

The Department of Finance (DOF) expects the inflation rate to remain at a manageable level in the short term at the least after increases in consumer prices eased to 3.3 percent in November from a peak of 3.5 percent a month ago.

This brought the average inflation in the first 11 months to 3.2 percent, slightly higher than the midpoint of the target range of 2 to 4 percent this year.

In an economic bulletin on inflation, Finance Undersecretary Gil S. Beltran said the average of 3.2 percent from January to November was well within the target range of the government.

“Core inflation of 3.3 percent suggests that in the foreseeable short-term, inflation will be manageable,” said Beltran, who is the DOF’s chief economist.

DOF data showed that price increases in food and non-alcoholic beverages for November eased to 3.2 percent from 3.6 percent the month before.

Other commodity groups that recorded lower price increases were rice, 1.0 percent from 1.1 percent; alcoholic beverages and tobacco, 6.1 percent from 6.8 percent; clothing and footwear, 1.8 percent from 1.9 percent; and education, 2.2 percent from 2.3 percent.

The commodity groups that posted higher price increases were housing, utilities and fuels, 4.2 percent from 4 percent; electricity, gas and other fuels, 9.7 percent from 9.1 percent; transport, 4.4 percent from 4.2 percent; recreation and culture, 1.6 percent from 1.5 percent; and restaurants and miscellaneous services, 2.9 percent from 2.6 percent.

Meanwhile, the commodity groups that maintained their level of price increases for the month of November were furnishings and household equipment, 1.8 percent; health, 2.2 percent; and communication, 0.4 percent.

Electricity rate per kilowatt hour for households consuming 200 kW in November increased to R9.63 from R9.28 a month ago. Also, the price of diesel per liter in the National Capital Region increased to R35.46 from R34.51 a month ago. Gasoline also increased to R48.48 from P46.89 in October.