Headline inflation rose slightly to 3.0 percent year-on-year in November from 2.8 percent in October. The resulting year-to-date average inflation rate of 3.8 percent remained within the Government’s target range of 3.5-5.5 percent for 2010. Core inflation, which excludes certain food and energy items to measure broad-based price pressures, was 3.5 percent in November, compared with 3.3 percent in the previous month. Month-on-month headline inflation was 0.8 percent in November from -0.2 percent in the previous month.
Electricity prices went up in November with the higher cost of power from the National Power Corporation (NPC) and the Wholesale Electricity Spot Market (WESM). Prices of petroleum products also went up, driving inflation for fuel and transportation and communication services. While food prices were stable, particularly for meat and rice, prices of vegetables went up in November due to limited supply following the previous month’s typhoons.
Governor Amando M. Tetangco, Jr. noted that the November inflation reading supports the BSP’s assessment of a favorable inflation environment over the policy horizon. Going forward, he emphasized that the BSP will continue to be closely attentive to inflation risks to ensure that the monetary policy stance remains consistent with the price stability objective.