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The board and the SC en banc

Isn’t it just like a corporate Board of Directors, this en banc of the 15 Supreme Court Justices that must have a collegial decision arrived at by a majority vote on major issues? It can challenge simple logic why, if even in the Machiavellian business corporation that would protect only a particular and limited group of stakeholders, internal procedures and protocols would be respected and complied with, while in the administration of the Supreme Court of the country, such working procedures in consensus-decision making would seem to be less rigid?

In a private corporation, “Directors or trustees can only bind the corporation by action taken at a board meeting (in quorum) so that… any action may be adopted only after full discussion; … (because) as agents of the corporation managing its affairs, directors or trustees… cannot act individually or separately… (and) have no power other than as a Board (Hector de Leon and Hector de Leon, Jr., The Law on Partnerships and Private Corporations, 2013, p. 312).”

But it can happen that some director or trustee, say the Chairman, would, by some personal motivation or willful deceit, or sometimes by sheer autocratic management style, act individually and separately from the collegial board, without the knowledge and consent of the other directors and trustees.

However, for every major collegial decision, the Board Secretary (unless in collusion) would draft the Board Resolution confirmed by the Board attesting to the quorum at an announced board meeting, and the majority (carried) decision on the issue or action of the corporation. Resolutions and minutes must reflect the discussions, motions, objections, voting, and resolutions for corporate records that must be available to stockholders, regulators and other publics.

The concept of collegial decision making in the Supreme Court en banc bases on the “primus inter pares” role of the Chief Justice as “first among equals,” meaning although the Chief Justice is the titular leader, she/he has only one vote like the 14 Associate Justices have one vote each when deciding full-bench (all present) on major issues or actions. Like the private corporation board of directors/trustees, no individual, not even the Chief Justice can decide or act alone and without the consent of the Supreme Court en banc, where there would have been discussions, motions, objections, voting and the final resolutions.

Comes now a complaint on Chief Justice Maria Lourdes Sereno, filed by lawyer Lorenzo “Larry” Gadon for her impeachment, listing supposed instances of delays and falsification of resolutions and temporary restraining orders (and misdeclarations on her statement of assets, liabilities and net worth [SALN]). Gadon also lists Sereno’s alleged manipulation of the Judicial and Bar Council shortlist for vacancies in the Sandiganbayan and Supreme Court (Rappler, Nov. 28, 2017).

In September, the House Committee on Justice voting 30-4 found lawyer Gadon’s impeachment complaint against the Chief Justice sufficient in form and substance (GMA News, Sept. 13, 2017). Last week, the Committee commenced hearings to determine whether the impeachment rap against Sereno has sufficient ground to be brought up to the Senate for the formal and final impeachment proceedings (The Philippine Star op. cit.).

On Wednesday, Associate Justice Teresita De Castro, after having been authorized by the Supreme Court en banc, appeared with Court Administrator Midas Marquez before the House panel to shed light on the allegations of Gadon against Sereno such as the supposed falsified temporary restraining order and administrative orders said not to have the backing of the court en banc (Ibid.).

Justice De Castro said that Chief Justice Sereno acted beyond her authority when she issued a “blanket” temporary restraining order on party-list proclamations during the 2013 polls, when the recommendation of de Castro’s panel was only for the Senior Citizen’s Party-list (Philstar.com, Nov. 29, 2017).

De Castro protested against Sereno’s alleged misrepresentation of the en banc’s Nov. 27, 2012 deliberations on the creation of the Regional Court Administrator’s Office (RCAO) Region 7, and Sereno’s alleged fabrication of a resolution that created a new office (under the Judiciary Decentralization Office [JDO]) when the en banc merely decided to study the issue further (Interaksyon, Nov. 29, 2017). De Castro told the House Committee that “no one” among her peers tried to correct her on her written protest (The Philippine Star, Nov. 30, 2017).

Sereno’s making questionable decisions without consulting fellow magistrates might be deemed serious grounds for impeachment by the House, now that first-hand confirmation (and not just Gadon’s hearsay) has been testified by de Castro. But Sereno had already publicly replied in September that it was false to say she acted unilaterally in reviving RCAO 7 because the order had already been approved through Supreme Court resolutions, and that the full court had not issued a resolution scrapping the resolutions that created the office (inquirer.net, Sept. 26, 2017).

Sereno also denied tampering with De Castro’s draft temporary restraining order (TRO) in the leadership dispute of the Coalition of Associations of Senior Citizens in the Philippines to benefit other party-list groups affected by a Commission on Elections (Comelec) resolution. She reasoned that upon her evaluation, a Comelec resolution could not be restrained in favor of one group but not the others (Ibid.).

The Chief Justice further stated that “it was not unheard of for a Chief Justice to issue administrative orders because as ‘head of the entire judiciary,’ her ‘broad administrative powers’ had been supported by ‘long-standing practice and tradition (Ibid.).’”

So, it has been “long-standing practice and tradition” that has given the “primus inter pares” more “primus” than inter-pares, as often the chairman is, in practice, the most powerful in the board of directors. Detailed and specific internal rules for collegial decision making and a strictly abided Code of Good Governance and Ethics seem to be lacking more in the workings of the Supreme Court en banc than in the money and profit-oriented and more down-to-basics corporate board of directors and trustees.

It behooves the highest court in the land, the Supreme Court, to streamline its en banc decision making to best practices in private corporations. Why, those accusations of tampering of resolutions and unilateral decisions by Chief Justice Sereno are of 2012 and 2013 vintage! Why did the en banc let those slide with no definite resolutions until now?

And, again, learning from the Corporation Code (Sec. 25): there should be an independent “Board Secretary” to record the minutes and draft the resolutions on major decisions and actions of the SC En Banc. Not the Chief Justice, as it is now.

Perhaps the complaints against Chief Justice Sereno on unilateral and unauthorized actions in the En Banc and by her primus inter pares position should be dealt with internally in the Supreme Court first, before these can be roused up by outsiders.

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

He’s back

As expected, Tiger Woods was both spectacular and so-so in his first tournament since April and fourth over the last two and a quarter years. With brisk weather helping the otherwise-inviting championship course of the Albany Golf Club in The Bahamas present more of a challenge yesterday, he looked flustered and rusty in posting a 75 marked by five bogeys against just two birdies. Considering that he put up a heady 68 the day before, he was understandably disappointed.

To be sure, Woods was not alone in hitherto waxing optimistic about his comeback. With booming drives and confident putts back in his arsenal, he showed significant improvement through his first two rounds in the Ernie Els-designed layout. The 69 and 68 he signed for certainly belied his world ranking and reflected both the intrinsic talent he possessed and the extent of his convalescence. Which was why other players could not help but keep tabs on him and be buoyed by his progress.

That said, it was fair for skeptics to wonder about Woods’ stamina. And, in this regard, his output yesterday showed his need for more reps before being declared in tip-top shape. He labored through the excess of wind inside the ropes, and seemingly with a lack of it inside his lungs. And for all the strength he showed off the tee, he struggled with accuracy, compelling him to scramble time and again, to mixed results. Meanwhile, his deft touch on the greens was offset by his tentativeness off them.

No matter how Woods does today, though, it’s clear that he’s back. And the scary part is that he will get better with time. He’s already swinging without restraint, as if he didn’t go under the knife to repair a damaged back for a fourth time a mere 10 months ago, as if he didn’t fret about his future in early October. And he’s not just pain-free; he’s worry-free — as best an indication as any that his return to form is a matter of when, not if.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Families considering themselves mahirap

Families considering themselves mahirap

Catwalk goes online with runway auction

LOS ANGELES — The catwalk has met the auctioneer’s gavel and gone online.

In a streaming fashion show Saturday, a California auction house aimed to modernize the auction format with what it calls the “first ever runway fashion show auction.”

GWS Auctions offered for sale a vast collection of Chanel-labeled fashion and accessories, along with items formerly belonging to late Hollywood actress Elizabeth Taylor.

The entire collection would be worth more than $25 million if bought in stores at current prices, organizers said, though the seller wished to keep final selling prices private.

During the sale in Beverly Hills, models wore the main pieces while the show was streamed online “so bidders from around the world can participate,” GWS said.

Prior to the sale, event organizer Brigitte Kruse told AFP it would not be a stereotypical auction “where people show up and see things laying out or hanging up.”

“We’re actually going to provide a live visual for our bidders,” she said.

The firm put up for sale a collection of 225 pieces, including 139 labeled Chanel. They are from the collection of a former honorary consul of Liechtenstein, Mary Jean Thompson.

Also on offer was jewelry and other articles from a Californian family who are descendants of Vietnamese royalty.

GWS calls it “one of the largest personally owned Chanel collections,” but the auction also included pieces labeled Dior, Gucci, Louis Vuitton and Valentino.

Among the items is a ring estimated to be worth more than $300,000. It is set with a yellow diamond and belonged to the Nguyen dynasty of Vietnamese royals.

Another ring, which Kruse said Thompson obtained at an AIDS fund-raiser, belonged to Elizabeth Taylor, the movie queen whose works included National Velvet and Cleopatra. She died in 2011.

The ring is valued between $20,000 and $40,000 but Kruse said it has small diamonds and was not one of the actress’s “quintessential pieces.”

“There are no photographs of her wearing it,” Kruse said.

Without Taylor’s name associated with it, the ring would be worth no more than $1,500. — AFP

Shares to take cue from tax reform bill progress

By Arra B. Francia, Reporter

LOCAL EQUITIES are expected to get a push from the final version of the government’s tax reform program as the country’s legislators accelerate deliberations ahead of the Christmas break. 

The 30-member Philippine Stock Exchange index (PSEi)stayed in negative territory last week, closing 1.33% or 110.01 points lower at 8,144.02 on Friday.

Week on week, the local bourse dropped 221.09 points or 2.71%.

“Our market didn’t manage to stay above (the 8,200 level) so I’m expecting the tax reform deadline this month may provide a cushion to this volatile market and it might push our market a bit higher before yearend,” Timson Securities, Inc. equities trader Jervin S. de Celis said in a text message last week. 

RCBC Securities, Inc. equities trader Jeffrey Lucero noted the same, saying he would “want to see a package that is not significantly watered down.”

The bicameral conference committee, composed of members from both the Senate and House of Representatives, are hopeful that they can reconcile the two versions of the bill before Congress goes on break on Dec. 15. 

Stark differences between the two draft bills include the revenues expected to be generated during its first year of implementation, where the Senate version computed around P130 billion against the House’s P133.8 billion. The two versions also have different tax rates on automobiles, sugar-sweetened beverages, fuel, mining, coal, cosmetic procedures as well as prescription drugs.

“But if that catalyst fails to buoy investor sentiment if the index fails to stay above 8,100 then we might see the start of the downtrend soon,” Mr. De Celis noted.

Online brokerage 2TradeAsia.com meanwhile attributed last week’s downward trajectory to “typical changing of hands.”

“Encountering skeptics is part of the trading process, especially for players who run short of their view of the entire picture of regional economies’ healthy mix of return and risks,” the online brokerage said in a weekly market note.

The bourse ended the week with all sectoral indices in the red, with the property subindex posting the biggest decline at 1.52% or 59 points to 3,808.92. The services sector meanwhile had the least losses at 0.78% or 12.62 points to close at 1,597.78.

The index likewise held a net foreign selling position of P190 million, from a net inflow of P1.22 billion recorded in the previous trading day.

“At the end of the day, it all boils down on expected yields, and aggressive capex (capital expenditure) line-up is among fund managers will be aiming for. The capex plan will help support growth outlook for 2018 and fundamental merits will be considered,” according to 2TradeAsia.com.

Analysts pegged immediate support of the market to be within 8,000 to 8,100, with resistance at 8,300 to 8,400.

Smart on track to complete LTE rollout by end-2017

SMART Communications, Inc. said it is on track to complete the upgrade of more than 4,200 3G and long-term evolution (LTE) sites across the country by the end of the year.

“Our commitment to the National Telecommunications Commission (NTC) is to meet 90% municipality coverage next year for 3G and 4G mobile broadband, and we are well on-track to meet this,” Joachim Horn, chief technology and information advisor for PLDT and Smart said in a statement.

Mr. Horn said the coverage upgrade is already at 89%, “so we will definitely meet that target early next year.”

Last year, Smart’s parent PLDT, Inc. submitted to the NTC a three-year network rollout plan, promising to make LTE available to 95% of the country’s cities and municipalities by the end of 2018.

“This year, we more than doubled the number of sites which are capable of LTE,” Mr. Horn said, noting 90% of Metro Manila’s sites already have LTE.

Smart said improvements in Internet speed are seen in Metro Manila.

“Recent internal tests in Parañaque, for example, recorded median LTE download speeds of 17.9 megabits per second (Mbps) and median upload speeds of 12 Mbps, while median download and upload speeds of 27.6 Mbps and 16.1 Mbps, respectively, were posted in Caloocan. In Taguig, Smart LTE recorded median download speeds of 18.6 Mbps, while median upload speeds were at 13.7 Mbps,” Smart said.

The upgrades are part of the comprehensive network modernization and expansion program at the heart of the PLDT group’s digital pivot.

Smart has completed its LTE deployment in Metro Davao and Metro Cebu, in the island of Boracay, and in the province of Rizal, with deployment underway in Metro Manila and in key cities in other parts of the country.

It began deployment of LTE sites using the 700 megahertz (MHz) band last year, after PLDT and Globe teamed up to buy the telecommunications assets of San Miguel Corp. (SMC) for P69.1 billion.

Smart has also started deploying four-component carrier (4CC) aggregation technology in its Metro Manila network, which it says can provide “very high” LTE-Advanced (LTE-A) mobile data speeds.

Carrier aggregation is the combination of multiple frequency channels to provide a much wider highway for the flow of mobile data.

“We already tried this in Boracay, and we have just completed the upgrade of Marikina, where we have upgraded all base stations with 4-carrier aggregation. The benefit for the customer is much higher capacity, and much higher speeds. So if you go to Marikina, you will easily be able to achieve more than 100 Mbps on your phone,” Mr. Horn said.

Mr. Horn said Quezon City will be the next target area followed by other parts of Metro Manila.

Earlier this year, Smart activated 4CC in Boracay, and said the technology reached average speeds of 280 Mbps.

Smart said that after the initial deployment of 4CC technology in Metro Manila, its internal tests showed consistent delivery of speeds going above 300 Mbps in a single-user scenario, and above 200 Mbps in a multi-user, daytime setup.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Nation at a glance — (12/04/17)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Analysts’ November inflation rate estimates

THE OVERALL RISE in prices of widely used goods and services could have eased in November as a stronger peso softened import costs, according to analysts polled last week who said this should leave room for the central bank to steady its policy stance till yearend. Read the full story.
Nov. poll puts inflation on track to target

How PSEi member stocks performed — December 1, 2017

Here’s a quick glance at how PSEi stocks fared on Friday, December 1, 2017.

Reinventing internal audit in the age of disruption

CHANGE IS COMING faster than ever. As technology and the world economy changes at an accelerated pace, so too does the level of emerging risks that come with it due to regulatory requirements and globalization, among others. These changes are having a significant impact on how Internal audit (IA) functions in an organization.

Management relies on IA to provide assurance on the effectiveness of internal controls and company processes, while also providing support to a diverse array of risk management and business process improvements. Because of how recent developments in technology are affecting the way business is operationalized, stakeholders also expect IA to cope with the volatility. It is further expected to elevate its profile to have the ability to identify, anticipate, assess and address emerging risks coming out of business changes; transform the IA function to provide improved strategic value to stakeholders; and provide cost efficiencies to the business.

Current trends in technology and emerging risks are significantly challenging how IA strategy and approach are designed and executed.

DATA ANALYTICS AS A GAME CHANGER
Traditionally, when audit is performed, auditors focus on what could go wrong. They identify and test controls that address what could go wrong by extracting and selecting a representative sample out of the population. Given that the process of sample selection is random, the sample might not be properly representative and the resulting audit may miss critical areas and fail to identify all relevant issues.

Using analytics, IA can examine an entire population by mining past data to better understand what has already happened, anticipate future events, and help determine the effectiveness of future decisions and actions. It allows analysis of the full population versus sample data in order to identify anomalies, see patterns and note any trends that may point to significant control or process deficiencies.

IA’s adoption of analytics does not only mean acquisition of tools and techniques but also requires a change of mindset. IA needs to know what it is looking for to identify the appropriate data to pull, and the analytics program to develop. This is only the first step. The ability to institutionalize the process to make it repeatable and scalable across the organization is a journey that will require the right resources, project management and governance.

RISE OF ROBOTICS TO DRIVE EFFICIENCIES
In past columns, we have written about how robotic process automation (RPA) is working to streamline operations, enhance productivity and reduce mistakes in organizations, as well as how companies can leverage RPA to upskill existing talent to create combined human and robotic work forces. The same holds true for IA, where RPA can handle the execution of repetitive and controllable processes thereby freeing up human talent for more critical, value-added, judgment-based work. Robotics can also be integrated with analytics, thereby leveraging large volumes of data to perform cognitive tasks.

An example is a global engineering company that uses robotics during the IA process to perform analytics on bank transactions in identifying any mismatched amounts, dates, currencies or bank account numbers. Similarly, another use of RPA can be to format and upload data into an analytics tool, allowing the system to ensure 100% coverage of data, with faster processing time and reduced chance of human error.

AMPLIFIED RISK RELATED TO SOCIAL MEDIA
Social media are redefining the way we develop our networks and even manage businesses. A majority of online adults use social networking sites to do business or share opinions, views, photos and media. This disruption presents new challenges and opportunities to companies, which result in the rise of significant risks, such as employees inadvertently leaking sensitive company information, criminal hackers and multiple platforms creating more access to viruses, malware and phishing. IA’s business insight and control expertise play an important role in providing awareness on how social media can be better managed across the organization and identifying and evaluating threats brought by social media to the organization’s information security protocols.

BUILDING TRUST IN A CLOUD ENVIRONMENT
Cloud computing has become a force in the marketplace and has become common as companies seek cost reductions and streamline operations. When systems are moved to the cloud and managed by third parties, due diligence related to controls are often missed out. Use of cloud computing presents certain risks that need to be considered when IA designs its audit procedures. Examples include infrastructure and architectural risks (ability of providers to achieve agreed performance), regulatory and compliance risks (transparency in security controls), contractual risks and business continuity risks among others. IA’s role is vital in evaluating whether proper governance is in place, adequate information security policies and practices exist, and clear metrics are documented to assess a service provider’s performance.

INCREASING IMPORTANCE OF CYBERSECURITY
The increased reliance on information emerging from technology-driven channels also increases technology-based risks. Greater ease of access to information is now the new normal, and companies need to find the balance between enabling technology and protecting assets from malicious individuals. As discussed in previous articles in this column, cybersecurity risks are a challenge for every company. Companies, regardless of size, are often targeted for their intellectual property. Given the heightened cybersecurity threats environment, companies need to upgrade existing controls in anticipation of worst case scenarios. In this area, IA will be significant in evaluating the company’s information security programs, the adequacy of the company’s incident-handling process in identifying potential vulnerabilities and threats, and the management of access to critical information and privacy.

KEEPING PACE – IA OF THE FUTURE
IA is only one of many business functions now being transformed by data, technology and innovation. Automation frees up resources so that they may be put to better use. While having in-house IA knowledge of technology generally makes operational sense, applying strategic partnerships to areas such as data analytics and robotics may yield better results.

IA leaders can continue to stay relevant to stakeholders and drive effectiveness and efficiencies for the company by rethinking audit delivery through investment in digital enablers such as RPA and optimizing the use of analytics in execution. The rise of new audit topics and the application of new tools require reinventing the future of talent as well. The required skills of an IA professional will now shift from pure audit expertise to those that address industry insight, technology advancement, and cultural adaptation. IA leaders should align these skillsets when recruiting new talent. While some skills may be developed internally, companies can also consider tapping an external flexible work force using co-source consultants or external subject matter resources so that internal talents can be refocused to higher impact audits.

IA must balance its priorities and resources to help organizations address the risks companies face today, anticipate emerging risks and stay in or ahead of the game. IA needs to adapt to today’s rapidly changing business environment and leverage on the newest developments in order to stay ahead of the curve. To give an old saying a new twist — necessity, after all, is the mother of reinvention.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

Christiane Joymiel C. Say-Mendoza is an Advisory Partner of SGV & Co.

Philippine PMI gains further momentum in November

By Melissa Luz T. Lopez, Senior Reporter

PHILIPPINE manufacturing activity further picked up steam in November to post the biggest surge this year on the back of strong demand for products both locally and abroad, according to monthly tracking done by IHS Markit for Nikkei, Inc.

The seasonally adjusted Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) picked up to 54.8 in November from 53.7 the previous month, signaling “further improvement in business conditions” amid production expansion and new orders.

A PMI reading above 50 suggests improvement in business conditions compared to the previous month, while a score below that signals deterioration.

“The latest reading was also the highest so far this year,” read the report on the Philippines, citing expansion in output and new orders. “Anecdotal evidence suggested that strong economic conditions, promotional activity and greater client demand continued to sustain order book growth.”

Higher export demand for Philippine products gave a boost to the already upbeat orders from the domestic market, the PMI report added. This comes ahead of the expected surge in demand in time for Christmas.

Factories also hired more workers to take on additional workload ahead of the holiday season, as well as to address backlogs. November marks the third straight month of improving operating conditions, and hinted at stronger industrial activity during the fourth quarter.

The manufacturing PMI is composed of five sub-indices, with new orders having the biggest weight at 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).

The monthly data is culled from replies to questionnaires sent to purchasing executives of 350 industrial companies. “Factories stepped up their purchasing activity to meet current and future demand. The rise in buying levels was the greatest since December last year,” the report added.

PMI growth logged 55.7 in December 2016.

More upbeat factory activity came despite “intensified” inflation pressures, although businesses remain optimistic even as prices of raw materials are on the rise. The central bank pegged November inflation between 2.9-3.6% in November, coming from the previous month’s 3.5%.

Still, manufacturing firms expect greater output in the coming months, signaling that they grew “more confident” about future business prospects.

Bernard Aw, principal economist at IHS Markit, said the latest PMI readings suggest that the industry will see its “strongest quarter for 2017.”

“Furthermore, there are signs in the latest survey sub-indices to suggest the upturn will gather pace in December,” Mr. Aw said in a statement. “The PMI suggests the strong growth momentum in the Filipino economy has some way to go.”

However, Mr. Aw noted that rising prices of raw materials and basic goods remain a concern for companies, coupled with a weaker peso, could result in an “unwelcome tightening” of profit margins.

Security Bank economist Angelo B. Taningco said broad business confidence among domestic and foreign markets drove stronger demand for local products, noting robust PMI figures provide assurance that economic growth will remain buoyant.

“The positive performance of manufacturing certainly bodes well for the Philippines’ GDP growth, which I think will likely stay above 6% in the fourth quarter,” Mr. Taningco said via e-mail. “However, its buoyant activity in November alone is not enough for GDP growth to reach 7% or higher; I think this has to be supported by improvements in the output activity of both agriculture and services sectors.”

Philippine gross domestic product expanded by 6.9% during the third quarter, beating market expectations and bringing the nine-month tally to 6.7%. This compares to the 6.5-7.5% growth goal set by the Duterte administration for the full year.

DoF sees November inflation easing to 3.2%

INFLATION likely eased in November, as stable food prices are seen to offset higher fuel costs and electricity rates, the Department of Finance (DoF) said on Friday.

In an economic bulletin, the DoF said inflation likely came in at 3.2% last month, lower than the 3.5% in October, which was the fastest in three years. The November print would be higher than the 2.5% recorded during the same month in 2016.

The DoF’s forecast falls within the Bangko Sentral ng Pilipinas’ 2.9-3.6% forecast range announced earlier this week.

The DOF projected the increase in prices of food and non-alcoholic beverages slowed to 2.9% in November from October’s 3.6%, while alcoholic beverages and tobacco dropped to 6.2% from 6.8%.

However, prices for housing, utilities and fuels subgroup likely grew by 4.2%, from the previous month’s 4%, while furnishings, household equipment increased by 1.9% from October’s 1.8%.

The DoF also cited the higher electricity rates and retail pump prices. Manila Electric Co.’s (Meralco) rate per kilowatt hour (kwh) for a household consuming 200 kilowatts per month increased by 35 centavos to P9.63 in November.

The price of diesel per liter in the National Capital Region went up to P35.37 last month from P34.51 in October. Gasoline prices, on the other hand, rose to P48.44 per liter in November from P46.89 per liter in the previous month.

“Adequate supply of goods from higher production will further dampen inflation rise in the future. This will likewise temper the rise in interest rates despite the ongoing [US Federal Reserve] tightening,” the DoF said in a statement.

The Philippine Statistics Authority will report November inflation data on Tuesday.

Overall commodity price increases averaged 3.2% in the ten months to October. — K.A.N. Vidal