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The most expensive foods raised inflation in November to its highest level in 19 months, according to the Philippine Statistics Authority (PSA).
On Friday, PSA said inflation averaged 3.3 percent, the highest since March 2019 when inflation was at the same pace. This placed the average inflation for the year at 2.6 percent.
National statistician Claire Dennis S. Map said that food accounted for 51.7 percent of inflation in November 2020. She said that data collection was able to gather the information just after the recent typhoons that highlighted supply problems that led to higher prices.
“Our data shows that the sources of inflation are really in our food basket. [Our data showed the sources of inflation are really in our food basket]. [These are] vegetables, meat and fish, so they are really influenced by the supply and there are typhoons in November, so it affected these prices, ”said Mapa at the press conference on Friday.
“[Our survey on] The consumer price index is done twice a month. Our first survey is done in the first week of the month and the second is done in the middle. So they quickly capture the impact of typhoons on changing prices in commodity groups, ”he added, partly in Filipino.
The prices of vegetables like onions and tomatoes increased to 14.6 percent in November from -0.5 percent in October 2020.
The data also showed that meat, particularly pork, up 8.2 percent from 4.7 percent; and fish like galunggong or round scad, 5.3 percent from 3.7 percent.
The prices of alcoholic beverages and tobacco, particularly cigarettes, also contributed to higher inflation of 13.2 percent in November 2020 from 11.8 percent in October 2020.
Mapa explained that while the Department of Agriculture imposed a Suggested Retail Price (RRP) for these commodities, supply disruptions caused by typhoons affected food prices.
He added that in the case of meat, the Philippines experienced an outbreak of African swine fever (ASF) that affected the constant supply of pork in the country.
Furthermore, Mapa said, logistics and transportation costs were high in areas like Metro Manila, thus increasing food prices in these areas.
Inflation in Metro Manila was 3.5 percent, mainly due to higher prices for food and non-alcoholic beverages, which increased 6.2 percent in November 2020 from 2.6 percent in October 2020 .
Rice was one of the foods that saw a rapid price increase in Metro Manila by 3.9 percent in November 2020 from 1.9 in October 2020.
This is in contrast to rice prices in areas outside the national capital region, where the increase in rice prices was -0.6 percent in November from -0.8 percent in October.
Mapa explained that rice prices in Metro Manila rose due to low supply caused by logistics problems, as well as the increase in rice varieties available in the Philippine capital.
He said there was a larger increase in the price of regular and well-milled rice, which averaged P32 to P38 per kilo and around P40 per kilo, respectively. However, special rice varieties of P50 and above did not register higher inflation.
“We have seen this happen in the last two or three months, when the trend in rice in the National Capital Region started to change. Our field offices in the National Capital Region gave us two reasons why I asked them to verify in the media, ”said Mapa.
“First, this November supply was reduced, delivery and varieties are different, which means that our variety is increasing here in regular grind and in well-ground rice, ”he added.
However, in terms of region, Bicol, which was significantly damaged by typhoons Quinta, Rolly and Ulysses, had the highest inflation at 5.5 percent.
Mapa said this was due in large part to the cost of transportation that posted 37.6 percent inflation in November 2020. There was a 125.6 percent increase in tricycle rates, while the rates for tricycles jeepney posted inflation of 33.5 percent.
Inflation for the poorest
Inflation for the poorest income households continued to rise to 3.6 percent in November 2020.
This is the highest inflation on record for households with the lowest 30 percent income since February 2019, when inflation was 4.3 percent.
However, inflation experienced by the poorest Filipinos living in Metro Manila was 6.2 percent in November 2020. This was the highest since December 2018.
The largest increase in inflation in NCR for the poorest 30 percent of the population was recorded in Transportation, which was 23.2 percent. Transportation inflation surpassed the 20 percent level in July and maintained inflation above 20 percent until November 2020.
It was followed by Alcoholic beverages and tobacco with 10.1 percent, and Food and non-alcoholic beverages with 9.1 percent.
PSA data showed food and non-alcoholic beverage inflation of 9.1 percent to be the highest since October 2018.
