Neil Jerome Morales and Enrico Dela Cruz
Manila (Reuters) – Philippine annual Inflation soared to 14 year high The statistics agency said on Tuesday that November was mainly driven by rising food prices, and the price rebound supported a 0.5 percentage point interest rate hike this month.
Consumer Price Index (CPI) rose 8.0% year-on-year in November, up from 7.7% in the previous month and 7.8% forecast in a Reuters poll, but within the central bank’s 7.4% forecast for this month -8.2%.
Food inflation rose to 14.0% year-on-year in November, the fastest growth rate since September
Excluding the volatile food and energy components, core CPI rose 6.5%, faster than October’s 5.9%.
After the data, the Bank of the Philippines (BSP) reiterated that it “remains ready to take all further monetary policy actions necessary to bring inflation back on a path consistent with the target in 2019” in the mid-term. “
The year-to-date inflation rate is 5.6%, well above the central bank’s annual target of 2%-4%.
The Philippine central bank has raised interest rates six times this year, These included two hikes of 25 basis points in July and November and another 25 basis point announced by its Governor last week Or 25 basis point hike at December 14 meeting.
ING economist Nicholas Mapa said the central bank may opt for a 25 basis point hike this month, which would bring the policy rate to 5.25 %.
“Demand-side pressures persist, with items related to retaliatory spending such as restaurants and personal services seeing higher inflation,” Mapa said in a message on Twitter.