Headline inflation dropped to 4.7 percent year-on-year in November from 5.3 percent in October using the 2000-based Consumer Price Index (CPI) series. Using the 2006-based CPI series, headline inflation also slowed down to 4.8 percent in November from 5.2 percent in the previous month. The year-to-date averages of 4.5 percent (2000-base year) and 4.8 percent (2006-base year) are both within the Government’s inflation target range of 3-5 percent for 2011.
The lower November inflation outturn was within the BSP’s monthly forecast of 4.5-5.4 percent, and was due mainly to the slower increase in the prices of selected food items, particularly rice, meat, fish and vegetables as supply remained adequate. Core inflation, which excludes certain food and energy items to measure generalized price pressures, also declined to 3.7 percent in November from 3.9 percent in October based on the 2000 CPI basket.
Governor Amando M. Tetangco, Jr. noted that the lower inflation reading in November was consistent with a manageable inflation outlook, with accompanying downside risks associated with the likely moderation in global demand and commodity price pressures as world economic recovery remains weak. He emphasized, however, that although the BSP’s latest forecasts suggest within-target inflation for 2011-2013, the BSP continues to keep a close watch on evolving developments to ensure that monetary policy settings remain appropriately calibrated to the outlook for inflation and economic growth.
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