Rise in November inflation ‘not cause for alarm’: Palace

File: Headline inflation slightly inched up to 1.3 percent in November after a five-month slowdown in price increases in basic commodities. (Pixabay photo)

MANILA — The slight uptick in consumer prices in November should not be a cause for concern, considering that the latest inflation still settled within the forecast of the Bangko Sentral ng Pilipinas (BSP), Malacañang said on Friday.

Headline inflation slightly inched up to 1.3 percent in November after a five-month slowdown in price increases in basic commodities.

The latest inflation rate picked up from the 42-month low of 0.7 percent in October but was still within BSP’s forecast of 2 percent to 4 percent for the month and lower than the 6 percent registered in November 2018.

“The increase in inflation rate in November 2019 to 1.3 percent from October 2019’s 0.8 percent should not be a cause for alarm,” Presidential Spokesperson Salvador Panelo said in a statement.

“Soaring inflation, which peaked at 6.7 percent last year, has been slain through the efforts of responsible agencies, and is now a thing of the past,” he added.

Panelo acknowledged that the faster headline inflation in November was driven by highest annual increase registered in alcoholic beverages and tobacco index (17.6 percent).

PSA reported that higher annual increases in housing, water, electricity, gas and other fuels (1.2 percent); furnishing, household equipment and routine maintenance of the house (2.8 percent); health (3.1 percent); and communication (0.3 percent) also contributed to the higher inflation in November.

“Our economists attribute the same to excise taxes,” Panelo noted.

Panelo, however, said for the first 11 months of this year, inflation rate averaged at 2.5 percent, which the Trade department has said remains a “very tamed inflation rate” and “much lower than the full-year range of 2 to 4 percent we are expecting.”

The Palace official also echoed the Finance department’s stance that the country’s stable macroeconomic fundamentals and streamlined food supply would enable the economy to “attain rapid growth and sustain low inflation.”

He also noted that through appropriate fiscal and monetary policies, the country will be able to “ride safely through the ongoing trade war and avoid the shocks that slowed down many emerging economies.”

Panelo assured the public that the country’s economic managers would work harder to keep the inflation low.

“The Administration will maintain fiscal and monetary policies implemented by our economic managers to boost and further improve country’s economy, while keeping inflation low for our local consumers, amidst emerging global threats,” Panelo said.