Philippines: Inflation quickens as food prices rise
November 4, 2011
In October, consumer prices added 0.32% over the previous month, which was double the 0.16% increase observed in September. The result mainly reflected a rise in food prices, which spiked 0.80% month-on-month due to the damage wrought on crops by typhoons Pedring and Quiel. Consequently, annual headline inflation accelerated from 4.8% in September to 5.2% in October. Annual core inflation, which excludes the price volatility associated with items such as food and oil, quickened from 3.5% in September to 3.9% in October. Annual average inflation, which is the reference rate that the Central Bank uses to conduct its monetary policy, edged up from 4.5% in September to 4.6% in October. Currently, annual average inflation lies within the 1% tolerance margin around the 4.0% target rate set by the Bank for 2011.