Inflation hit a 33-month low in November, driven by a sharp drop in food prices
November’s headline inflation slowed to 1.5% YoY (Oct: 1.8%), a 33-month low, and below house and market estimate of 1.7% due to the lower-than-expected food prices
- The sharper-than-expected moderation in prices is primarily due to deflationary trends in food prices, both consumed at home and away from home. On a MoM basis, inflationary pressure was muted at 0.0% (Oct: 0.1%), with declining food prices offsetting increases in other categories.
- Similarly, core inflation has also experienced a moderation, settling at 2.0% (Oct: 2.4%). This can be attributed to a stagnant growth rate of 0.0% MoM, reflecting the absence of price pressures across nearly all subcomponents.
Lower food prices were equally outweighed by an increase in rental and transport services costs
- Food & non-alcoholic beverages (2.6%; Oct: 3.6%): slowed to its lowest since October 2021 despite the removal of price controls for chicken and eggs on November 1. This slowdown is mainly due to a sharp drop in fresh fish and meat prices.
- Housing, water, electricity, gas & other fuels (1.7%; Oct: 1.6%): rose to a four-month high due to an increase in rental (0.3%; Oct: 0.0%) and maintenance & repair of dwelling (0.1%; Oct: 0.0%) costs.
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