November inflation recorded at 2.6%
Headline inflation rate registered at 2.8 percent in ovember 2009, the highest since May 2009 (3.3%) but significantly lower than the 9.9 percent inflation rate recorded in November last year. This brought average inflation for January to November 2009 reached 3.2 percent, well within the Development Budget Coordination Committee’s (DRCC) forecast of 2.5 to 4.5 percent for 2009, Acting Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) Director-General Augusto B. Santos said in a memorandum to President Gloria Macapagal-Arroyo.
Santos said the six-month high November inflation was due to higher prices of food, beverage and tobacco (FBT), and housing and repair.
“Notwithstanding the lower prices of fuel, light and water (-1.1%) compared to last year, headline inflation rose due to higher prices of FBT (4.8%) and housing and repair (2.1%) which account for 63.4 percent of the total CPI basket,” he said.
Santos added overall inflation rose due to an increase in demand for construction and repair materials as typhoon affected areas continue to recover from the damage brought by typhoons Ondoy and Pepeng. Pushing up inflation were higher price increments in rentals (2.1%) and minor repairs (1.8%).
“The increase in the prices of housing and repair may be traced to the higher demand for construction and repair materials resulting from the rehabilitation of houses destroyed by typhoons Ondoy and Pepeng,” Santos said.
Meanwhile, major items in FBT also led the increase in prices. These items were fruits and vegetables (13.7%), eggs (6.1%), meat (5.9%), fish (5.3%), dairy products (3.4%), and cereal and cereal preparation (3.0%).
Rice prices also increased by 3.2 percent from last year. Higher prices of clothing (2.1%), services (0.2%), and miscellaneous items (1.9%) also contributed to the accelerated inflation last month.
Similarly, on a regional basis, the effects of typhoon Pepeng on major crops in Northern and Central Luzon drove up inflation in Areas Outside NCR (AONCR). AONCR inflation registered at 3.1 percent, higher than the NCR inflation of 2.0 percent. (NEDA-PID)
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