Philippines: Inflation rises in November
December 7, 2010
In November, consumer prices added 0.84% over the previous month, following on a 0.18% decline registered in October. The monthly price increase mainly reflected a rise in fuel, light and water prices, which increased 4.98% over October. As a result of the monthly price rise, annual headline inflation increased from 2.8% in October to 3.0%, contrasting market expectations that had inflation declining to 2.5%. Meanwhile, the annual core inflation rate, which excludes volatile items such as oil and food prices, increased to 3.5% in November (October: +3.3% year-on-year). Annual average inflation, which is the reference rate for Central Bank's policy making, remains unchanged since October at 3.9%, below the inflation target rate of 4.0% set by the Bank for 2011. Owing to the benign inflation environment, the monetary board decided to leave benchmark interest rates unchanged at 4.00% at its latest meeting held on 18 November.