DOF: Inflation to remain at manageable levels

The Department of Finance (DOF) sees the inflation rate remaining 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% a month ago.

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

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

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

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

Other commodity groups that recorded lower price increases were rice, 1% from 1.1%; alcoholic beverages and tobacco, 6.1% from 6.8%; clothing and footwear, 1.8% from 1.9%; and education, 2.2% from 2.3%. The commodity groups that posted higher price increases were housing, utilities and fuels, 4.2% from 4%; electricity, gas and other fuels, 9.7% from 9.1%; transport, 4.4% from 4.2%; recreation and culture, 1.6% from 1.5%; and restaurants and miscellaneous services, 2.9% from 2.6%.

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