World Economic outlook - Philippines consumer price index (CPI) november 2011 : The country’s annual inflation rate, as measured by the consumer price index (CPI) eased to 4.7 percent in November, slower than the 5.3 percent recorded in the previous month, the National Statistics Office said Tuesday, prompting the Bangko Sentral ng Pilipinas to declare that price increases may have already peaked for the year.
The CPI in November 2010 rose by a revised 3.1% from a year earlier.
Price increases in November were mainly driven by higher food and clothing and services rates.
The BSP projected the consumer price index to rise 4.5%-5.4% in November from a year earlier, while the median forecast of 10 economists polled by Dow Jones Newswires was for the CPI to rise 4.8% year-on-year.
From a month earlier, the November CPI was up 0.3%, after it rose 0.5% in October.
Inflation averaged 4.5% in the January-November period, still within the central bank's 3%-5% full-year target.
Core inflation, which excludes volatile food and energy items, was 3.7% in November, compared with 3.9% in October.
Based on a new 2006 series that the agency began releasing in July, annual inflation was 4.8% in November compared with 5.2% in October. Based on the 2006 series, average inflation in the January-November period was at 4.8%. From October, CPI in November was up 0.4% based on the new series compared with a 0.3% rise in the previous month.
The BSP said that the slower increase in the consumer price index in November showed that inflation already peaked in October.
"Inflation has peaked in October, making us well on the way to being within target for full year 2011. Over the policy horizon (up to 2013), we see the balance of risks tilted to the downside," BSP Governor Amando Tetangco told reporters in a text message.
The BSP signaled it may be preparing to cut interest rates after a report showed inflation slowed in November. Bonds rose.
“As the favorable inflation outlook provides us flexibility, we are open to possible easing early next year, especially if our own growth prospects continue to be subdued,” Bangko Sentral ng Pilipinas Governor Amando Tetangco said in a mobile-phone text message after the inflation report. “Over the policy horizon up to 2013, we see the balance of risks tilted to the downside.”
"As the favorable inflation outlook provides us flexibility, we are open to possible easing early next year, especially if our own growth prospects continue to be subdued," Tetangco said.
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