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LAWIN.news

PH inflation rises to 2.5% in November

by LAWIN.news December 5, 2024
written by LAWIN.news December 5, 2024
Photo by: Reuters
168

MANILA, Philippines –Inflation in the country rose to 2.5% in November, according to data from the Philippine Statistics Authority.

This increase follows a series of destructive storms that impacted the country’s food supply, raising concerns about the availability and pricing of essential goods.

The storms, which swept across several regions, damaged crops and disrupted distribution channels, leading to higher prices in local markets.

The devaluation of the Philippine peso also played a role in the inflation uptick.

The weaker currency increased the cost of imports, including essential goods like oil. The rise in import costs has been a concern for both consumers and businesses, as it directly impacts the price of goods that rely heavily on imported raw materials.

Central Bank of the Philippines officials have stated that this increase in inflation is considered mild.

They believe it is unlikely to disrupt the ongoing easing cycle. The central bank has been engaged in a series of interest rate cuts to support economic recovery following the pandemic. The rate cuts are designed to encourage borrowing and investment, stimulating economic growth.

Fuel prices also contributed to the inflation rise. The cost of oil and related products increased due to higher import costs. Transportation and logistics sectors faced challenges in managing these rising costs, affecting fares and delivery charges.

Despite the increase in inflation, consumer spending has shown resilience. Retailers report steady demand for goods, especially during the holiday season. However, there are concerns about how prolonged inflation might affect consumer confidence in the coming months.

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