November’s inflation rate to 2.5 percent from 2.3 percent in the previous month, the Philippine Statistics Authority (PSA) said Tuesday

“The increase in inflation can be attributed to the increase in domestic prices of petrol products, which comprise the bulk of the non-food commodity basket usually purchased by the average Filipino household,” said Socioeconomic Planning Secretary Ernesto Pernia in a statement.

Non-food inflation increased due to the price increase in all major non-food items such as housing, water, electricity, gas and other fuels (1.3 percent from 0.9 percent), and transport (0.5 percent from 0.2 percent).

Food inflation remained unchanged in November 2016 at 3.5 percent, with rice prices remaining steady for the first time in five months and corn prices going down for the fourth straight month.

“The decrease in rice prices signals the recovery of the rice sector from the devastation of typhoons Karen and Lawin,” added Pernia.

Pernia said the lifting of the Philippines’ quantitative restrictions for rice imports by July 2017 is expected to decrease prices of well-milled rice by seven pesos and farm gate price by five pesos.

“We must help our rice farmers prepare for this and help them transition to higher value crops as we ensure food security and make basic prices more affordable to the poor,” said Pernia.

“Overall we expect the full year inflation for 2016 to be well within the government’s inflation target band of 2-4 percent. The overall balance of risks is tilted on the upside, with supply-side factors as the main contributor to price adjustments,” said Pernia.

He explained that international and domestic risks are tilted upward from a possible rally in oil prices, depreciation of the peso against the US dollar, and pending petitions for electricity rate increases. DMS