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The country’s inflation rate rose to a 21-month high of 3.3 percent in November as prices for food and non-alcoholic beverages rose, the Philippine Statistics Authority (PSA) reported on Friday.
The figure was up from 2.5 percent in October and 1.3 percent a year ago. It also violated Bangko Sentral ng Pilipinas (BSP) estimate of 2.4 to 3.2 percent.
November’s inflation rate was the fastest since 3.8 percent in February 2019 and higher than the average outlook of 2.6 percent in a Manila Times survey of economists.
“The main reason for the increase in inflation in the month of November is the faster increase in the prices of food and non-alcoholic beverages,” noted National Statistician Claire Dennis Map in a briefing.
Mapa said the prices of heavily weighted food and non-alcoholic beverages had an annual increase of 4.3 percent.
“The data showed that the sources of high inflation are really the food basket, such as vegetables, fish and meat. This is really influenced by the supply and you have the typhoons in November so [these] prices affected, ”said Mapa.
Also driving the increase was the fastest annual increase seen in alcoholic beverages and tobacco at 12.3 percent.
So far this year, consumer price growth averaged 2.6 percent, which is within the central bank’s target range of 2-4 percent for 2020.
In a statement, the National Economic and Development Authority (NEDA) tracked the fastest inflation in November to restrictions on public transport as a result of the 2019 coronavirus disease (Covid-19) pandemic, the persistence of swine fever. africana and high value losses. crops after the onslaught of several typhoons and floods during the month.
Citing the latest estimates from the Department of Agriculture as of November 27 this year, the NEDA said the combined damage and losses in the agricultural sector caused by typhoons “Ofel”, “Nika”, “Pepito”, “Quinta”, ” Rolly “and” Ulises “reached P15.3 billion.
Bicol was the most affected region, followed by Calabarzon, Cagayan Valley and Central Luzon.
“Our experience with recent typhoons has highlighted the need for long-term engineering interventions, reforestation and coordinated flood management systems in different LGUs (local government units), and the need to intensify the distribution of climate-resilient technologies and other production support assistance. to mitigate the loss of production in the agricultural sector, ”said Acting Secretary for Socioeconomic Planning, Karl Kendrick Chua.
Chua added that the Rapid Response Fund can be used to repair and rehabilitate production facilities and irrigation systems damaged by typhoons.
Inflation for transportation services remained high in the past six months because social distancing rules limited the number of riders, according to NEDA.
Chua said that local governments and the Land Transportation Franchise and Regulatory Board should review current rate increases and, at the same time, reinforce the “seven commandments” of safe public transportation.
“To help ease the burden on public transportation operators and drivers who have been adversely affected by the closures, the Department of Transportation may also consider waiving some regulatory fees, as well as expanding the efficient service contracting mechanism. to incentivize continued operations and encourage more public utility vehicles to resume operations, given the reduced cargo capacity in compliance with minimum health standards, ”said Chua.
In a separate statement, Bangko Sentral Governor Benjamin Diokno said that despite the latest figure, inflation is projected to stay within the government’s target range of 2 to 4 percent for 2020-2022 “as it is expects the impact of supply disruptions due to recent typhoons to be largely transient. “
The downside risks to the global and national economy persist despite recent advances in the development of vaccines for the coronavirus, he noted. The logistical challenges in growing the vaccine should be addressed before recovery can resume, Diokno said.
“The BSP stands ready to deploy its full arsenal of instruments, as needed, in fulfilling its mandate to maintain financial and price stability leading to sustainable economic growth and employment,” he said.
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