The Bangko Sentral ng Pilipinas said the spike in inflation to 3.3 percent last November versus 2.5 percent in October was only “transitory,” with the full-year figures still seen to remain within the government’s target range.
However, the central bank said the balance of risks to the inflation outlook is still tilted toward the downside due potential disruptions to domestic and global economic activity amid the pandemic.
Finance Undersecretary Gil Beltran noted average food prices in November increased by 4.5 percent, up from the 2.1 percent growth in the previous month. This was driven by the uptick in food prices, with meat up 8.2 percent, fish higher by 5.3 percent, and vegetables climbing 14.6 percent.
He also said that the spike in vegetable prices was primarily due to the series of typhoons that hit the country.
The Development Budget Coordination Committee said it now expects inflation to settle at a range of 2.4 to 2.6 percent this year.