National consumer prices continued to drop for the third consecutive month in November 2024, with a sharper decline compared to the previous month, benefiting many people who have been struggling with high prices since 2022.
The National Consumer Price Index decreased by 1.7 percent over the year through November, following a 0.7 percent drop through October.
On a monthly basis, however, prices rose by 0.1 percent, driven mainly by higher food prices, including coconut, coconut oil, and rice, which have become significant topics in both social and political discussions.
Coconut prices saw the largest increase from October to November due to reduced production, with a significant portion of nuts consumed by the export industry.
The rising cost and availability of rice prompted government intervention, with the Cabinet deciding to import rice to stabilize prices and ensure there is no shortage as the country enters the year-end festive season.
While food prices overall remained stable year-over-year through November, the issues with coconut and rice contributed to a 0.4 percent rise in monthly food prices.
Non-food prices, on the other hand, continued to decline, dropping 3.1 percent in November from the previous year, though the pace of decline slowed to 0.1 percent from a 0.6 percent drop in October.
The Central Bank has projected that deflationary conditions will persist through most of the first half of the year, with prices expected to converge toward their 5.0 percent medium-term target.
The ongoing price decreases are seen as beneficial for the economy, as they help ease the inflationary pressures that have burdened consumers over the last three years, encouraging spending and economic growth.
Additionally, the upcoming savings from personal income tax reductions are expected to further support consumer spending.
Core prices, which exclude volatile items such as food, energy, and transport, rose by 1.5 percent in November compared to a year earlier, slowing from a 1.7 percent increase in October, indicating a cooling in underlying inflation.
