Philippine Inflation of November 2012 slips down 2.8% - Commodity prices increased?

Slower increase in prices was observed in major food items such as fish (5.9% in November 2012 from 6.0% in October 2012), milk, cheese, and eggs (3.3% from 3.4%), and fruits (4.9% from 5.2%). This was also coupled with the decline in prices of vegetables (-5.3% from -0.1%), and oils and fats (-4.9% from -4.5%).

November Inflation Eases To 2.8%

Ample supply of food and fishery products and lower prices of domestic petroleum have helped slow down the inflation rate to 2.8 percent in November compared to 3.1 percent in the previous month.

"The abundant supply of agriculture and fishery products in November 2012 resulted in greater annual reductions in the prices of various food items compared to the previous month," said NEDA Officer-in-Charge (OIC) Rolando Tungpalan.

The Bangko Sentral ng Pilipinas, meanwhile, said that the low consumer prices in November suggest its "current policy stance is still appropriate."

"[Slowing inflation] and improved domestic demand conditions support the view that policy settings remain appropriate for the time being," Bangko Sentral ng Pilipinas Gov. Amando Tetangco said in a text message.

"That said, we continue to monitor the impact of the cumulative 100 basis point cut [in interest rates] on credit demand and liquidity growth to see if these are still in line with domestic absorptive capacity," Mr. Tetangco added, referring to the full percentage point of cuts introduced under the central bank's easing drive.

Overnight interest rates are now at a record low of 3.50% for borrowing and 5.50% for lending.

The central bank will hold its last policy review meeting for the year on Dec. 13.

The November inflation print was the slowest since June's 2.8%.

The BSP projected the consumer price index to rise 2.7%-3.6% in November from a year earlier.

November CPI was up 0.1%, after it fell 0.1% in October.  Inflation averaged 3.2% in the January-November period, still within the central bank's 3%-5% full-year target.

Slower increase in prices was observed in major food items such as fish (5.9% in November 2012 from 6.0% in October 2012), milk, cheese, and eggs (3.3% from 3.4%), and fruits (4.9% from 5.2%). This was also coupled with the decline in prices of vegetables (-5.3% from -0.1%), and oils and fats (-4.9% from -4.5%).

"Slower increases of prices in electricity, gas and other fuels were also observed in November 2012 due to the contraction in Manila Electric Company's (MERALCO) generation charge and the lower prices of kerosene and diesel," said Tungpalan.

MERALCO's generation charge in November 2012 was lower by 2.7 percent (P0.16/kWh) against the same period in 2011 due to lower generation costs from suppliers.

Prices of kerosene also slowed down, falling by 2.5 percent in November 2012 from an increase of 3.5 percent in October 2012. Furthermore, diesel prices fell by 4.6 percent from 3.1 percent.

"These were due to the trimmed trading price of Dubai crude in the international market, which contracted by 1.6 percent from a 4.8 percent growth in October 2012," said Tungpalan.

November 2012's record for consumer prices brings the year-to-date headline inflation to a stable rate of 3.2 percent.

"The average inflation from January to November 2012 remains within the Development Budget Coordination Committee's target range of 3.0 to 5.0 percent for 2012," Tungpalan said.

Core inflation likewise decelerated for the month of November 2012 to 3.4 percent against 3.6 percent recorded in the previous month or 4.5 percent in November 2011.

"The lower core inflation implies an easing of demand pressures on consumer prices. With the continued benign price increases for the period, we are expecting that inflation should be manageable for the rest of the year," the NEDA official said.

Inflation rate in Metro Manila also eased to 2.6 percent in November 2012 from 2.9 percent in October 2012. Similarly, the inflation rate outside the capital slowed in November 2012 to 2.9 percent from the previous month's 3.3 percent.

From January to November 2012, the year-to-date inflation in Metro Manila stood at 2.9 percent, slower than the average movement of prices outside Metro Manila, which is at 3.3 percent. (EHL)  (http://is.gd/4UYRCn)

Manila Bulletin 

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Government ordered UAE to follow Philippine Law or no more Maids

Part of government plan to phase-out DH, DOLE, POLO and POEA – restricting the deployment to set to "0" by 2016

Philippines sets tough terms for sending maids to UAE: Minimum salary at $400

The Philippines has set tough terms for sending domestic workers to the UAE as is the case in Saudi Arabia, stipulating its maids must be paid not less than $400 a month and must have at least eight hours break every day.

The Philippine embassy in Abu Dhabi conveyed its government's terms to private labor recruitment agents in the UAE during a recent meeting in the capital, warning that any agent violating those terms would be put on the blacklist.

Reacting to such a decision, UAE authorities said they would not accept such terms and stressed that domestic workers from any country must be recruited in accordance with the official work contract enforced by the UAE government.

Quoted participants in that meeting, the Arabic language daily Emirat Alyoum said the Philippine embassy told them they must abide by the new regulations or they would be boycotted and banned from handling domestic workers from the Philippines.

"The embassy set the minimum wage for a Philippine maid at $400 (Dh1,470) a month and told labor recruitment agents in the UAE that any office which does not comply with these rules would be completely boycotted," the paper said.

It said the embassy asked those agents to notify it once a Philippine maid arrives in the UAE to take up a job so it will hand her the necessary documents.

"The embassy also stressed that employers must provide a separate room for the maid and that she must have a daily break of at least eight hours.

"It also stressed that the maid should not be assigned any work outside her employer's residence which is listed in the job contract and that the employer must allow her to contact the embassy or her family at home at any time," the paper said.

Other conditions include that employers are not allowed to renew the maid's contract or transfer her sponsorship to any other employer without a prior consent by the embassy.

"Sponsors violating those terms will be subject to penalties defined in the laws governing the hiring of Philippine domestic workers," it said. "In case they refuse to pay her the salary set in the new contract, the maid will be deported to her country."

According to Emirat Alyoum, the maid must be aged between 18 and 23 years and any company violating that limit would be blacklisted.

"Any agreement signed by a foreign embassy in the UAE is not legal," the paper said, quoting Major General Nassir al Minhali, UAE interior ministry assistant undersecretary for naturalization and residence affairs.

"The ministry of interior has a unified job contract for domestic workers coming to the UAE with well defined terms and duties. It guarantees the rights of the employers and the employees…we have not set any wage for domestic workers and any otherwise agreement will not be binding for any one."

The Philippines, one of the largest domestic workers suppliers to the oil-rich Gulf, has been locked in negotiations with Saudi Arabia to enforce similar terms for its maids working in the Gulf Kingdom. The negotiations followed a decision by Manila to halt the travel of its domestic workers to Saudi Arabia two years ago. (http://is.gd/x08tV2)

Emirates 247

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Hundreds of ABUSED Pinay Maids in UAE sought help from Amnesty

Amnesty seekers get directions from an official at the Philippine consulate in Dubai on Tuesday. — KT photos by Juidin Bernarrd

Filipino, Ethiopian illegals heave sigh of relief

Hundreds of amnesty seekers have poured into the Philippine consulate and the Consulate-General of Ethiopia on the first day of the two-month amnesty program for illegal residents.

Filipino Cherry R. said she resigned from her job upon the demands of her company when she ran into trouble with several banks for delinquent accounts. "I wanted to leave the UAE but I was informed by a friend, who went to check with the police and the immigration on my behalf, that two banks had imposed a travel ban. Even at the time my father died, I could not go home. This amnesty is a great opportunity for me to go home or to legitimise my status," she said.

Cherry and her friend Hijasmine were among the hundreds of Filipino amnesty seekers, who reached the Philippine Overseas Labor Office (POLO) of the consulate to signify intention to avail themselves of the fourth cycle of amnesty.

"I ran away from my employer five years ago due to maltreatment, lack of rest and insufficient food. I wanted to go home but my employers filed absconding case against me. So, I will take advantage of this amnesty program," Hijasmine said.

Susan E. has also been seeking for amnesty. "I have long wanted to go home and see my family. But, since the day I ran away after my employers failed to give me my salary, I had been trying to fend myself by doing part-time jobs for almost four years. I could not leave the UAE as the employers reported me to the police."

More than 200 amnesty seekers reached POLO to inquire about the process and seek assistance.

Consul-General Frank R. Cimafranca made an appeal to all Filipino organizations in Dubai to assist the needy in getting air tickets during the amnesty period. "Let us all join hands and give our "kababayans" an advance Christmas gift by extending them assistance in securing air tickets to be home for Christmas."

The Consul-General said a request can be put forward to the Department of Foreign Affairs (DFA) for funds to acquire air tickets but it might take time. On absconding cases, he said that the consulate needs more information from amnesty seekers as absconding involves breach of contract. Philippine Ambassador Grace R. Princesa said the embassy will seek clarification from the Ministry of Interior on various issues in the amnesty package to better serve the needy.

"We still have to verify what we read in the papers about the 'no ban' issue," the ambassador said.

At the Ethiopian Consulate-General, Fananesh A. said she has been illegally staying in the UAE for five years, and though she wanted to go home, she could not go back due to travel ban from banks. "With this amnesty, I am looking forward to seeing my family again."

Her friend Abenet S. was absconding from her employer, which stopped her from leaving the country.  "My father died and that day I cried for days because I could not go home. I felt I was put in a cage. Now is my time to go. Thanks to the UAE government."

Many Ethiopians have also come forward but no official figures have been released as yet. (http://is.gd/7eJrkR)

Khaleej  Times

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