Cheaper food items caused the country’s average inflation rate to slow in November compared to the previous month, according to the Philippine Statistics Authority (PSA).PSA said inflation slowed to 4.2 percent in November 2021 compared to the 4.6 percent posted in October 2021. This was mainly due to the decline in prices of vegetables and fish. However, the rate is higher compared to the 3.3 percent posted in November 2020. It is also above the government’s inflation target of 2 to 4 percent this year.“Pork prices continuously went down month-on-month from July to early-October. This means that our policy to temporarily import pork has been effective. However, the uptick in prices in November shows that we need to further ease administrative requirements for the unloading and distribution of stocks to encourage more importation and help bring back pork prices to their pre-African Swine Fever level,” Socioeconomic Planning Secretary Karl Kendrick T. Chua said.The National Economic and Development Authority (Neda) said in a statement that data from the Department of Agriculture (DA) showed a slower pork import arrival with only a 42 percent utilization of the expanded pork minimum access volume (MAV) as of end-November.Further, Neda said, the unreleased inventory of frozen pork is reported at 76,953 metric tons. The slow importation and release of inventory, together with higher demand due to the Christmas season, led to higher average pork prices in November.Meanwhile, inflation in NCR slowed to 2.9 percent in November 2021, from 3.2 percent in October 2021. In November 2020, inflation in the region was seen at 3.5 percent.Inflation in NCR during the month was pushed down by the slower annual hikes in the indices of food and non-alcoholic beverages at 1.7 percent, and alcoholic beverages and tobacco at 8.1 percent.Similar to the trend of the national level and NCR, inflation in AONCR slowed down further to 4.5 percent in November 2021, from 5 percent in October 2021. In November 2020, inflation in AONCR was posted at 3.3 percent.The slower pace in the inflation of AONCR was mainly brought about by the lower annual rate of increase in the index of the heavily-weighted food and non-alcoholic beverages at 4.4 percent during the month.Annual increments were also slower in the indices of alcoholic beverages and tobacco at 7.4 percent; furnishing, household equipment and routine maintenance of the house at 2.8 percent; and recreation and culture at 1.2 percent.Meanwhile, the PSA data showed inflation for the bottom 30 percent income households was still on a downward trend as it decelerated further to 4.2 percent in November 2021, from 4.8 percent in October 2021. It was recorded at 3.6 percent in November 2020.The Philippines’ average inflation for this income group of consumers from January to November 2021 posted at 4.8 percent.National Statistician Claire Dennis S. Mapa said this is the first time in at least two years that the inflation rate for the poorest Filipinos and all income households matched.The last time, he said, was in August 2019 when inflation for the poorest and the all income households was at 1.7 percent.The slower annual rates in the indices of food and non-alcoholic beverages at 4.2 percent; and alcoholic beverages and tobacco at 7.7 percent pushed down the overall inflation during the month.The data also showed inflation of consumer items for the poorest income households in NCR eased further to 1.5 percent in November 2021, from 3 percent in October 2021. Inflation for this particular group of consumers in the region in November 2020 was higher at 6.2 percent.Annual increase in the index for food and non-alcoholic beverages at 0.1 percent in November 2021 was lower relative to its annual rate of 3.2 percent in the previous month. The annual increment in alcoholic beverages and tobacco index also slowed down to 10.1 percent during the month.Outside Metro Manila, inflation for the bottom 30 percent income households in AONCR slipped further to 4.3 percent in November 2021, from 4.9 percent in October 2021. Inflation for the bottom 30 percent income households in AONCR was recorded at 3.6 percent in November 2020.Slower annual increases were observed in the indices of food and non-alcoholic beverages at 4.3 percent; alcoholic beverages and tobacco at 7.6 percent; and clothing and footwear at 2.5 percent.
Cheaper food slows inflation in November
- Cai U. Ordinario
- December 7, 2021
- 3 minute read