|
Wednesday, December 08, 2004
November inflation rises to 7.6%
INFLATION in the country rose to 7.6 percent in November from 7.1 percent in October, based on the 1994 Consumer Price Index series, according to the National Statistics Office.
This is within the Bangko Sentral ng Pilipinas’ (BSP) inflation forecast of 7.1-7.6 percent for November.
However, the latest figure brings the average inflation for the first 11 months of the year to 5.3 percent, which is above the government’s average annual inflation target of four to five percent for the year, the BSP admitted.
Using the 2000 CPI series—reflecting the updated consumer basket of goods and services, inflation increased to 8.2 percent in November from 7.7 percent in October, bringing the year-to-date average to 5.7 percent.
The uptick in the inflation rate was largely attributed to increased power rates in November.
There was also upward pressure from clothing, services and miscellaneous items. But a slowdown in price increases of some food items, such as rice, eggs, and fruits and vegetables, somewhat tempered inflationary pressures, the BSP said.
During its last monetary policy meeting on Nov. 18, the Monetary Board, the policy-making body of the BSP, noted that price pressures were coming from the supply-side rather than demand-side factors, notably increases in food and energy prices.
Demand-driven pressures were limited, the Board said, citing lingering concerns, such as the relatively high unemployment rate and the moderate pace of credit activity.
This being the case, the BSP has decided to maintain its current monetary policy settings. This means it has decided not to increase key interest rates.
Increasing interest rates has the effect of siphoning off money from the financial system, curbing consumer spending and putting the brakes on consumer price hikes. (CTL)
(December 8, 2004 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
