BSP sees inflation at 1.4-2.2% in October – BusinessWorld Online
By Katherine K. Chan, Reporter
Headline inflation may have eased year on year in October despite elevated prices of selected commodities and the peso’s recent weak performance, the Bangko Sentral ng Pilipinas (BSP) said.
Based on the central bank’s month-ahead forecast, inflation likely settled between 1.4% and 2.2% in October, slower than the 2.3% clip recorded a year ago.
At the upper end of the forecast, inflation likely accelerated from the 1.7% in September and would be the fastest clip in nine months or since the 2.9% clip in January.
Meanwhile, inflation could have hit a three-month low or since the 0.9% in July at the bottom end of the forecast. It would also mark the eighth straight month that inflation fell within the BSP’s 2-4% target range.
“Upward price pressures for the month may stem from higher prices of rice, fish, vegetables, and electricity, as well as the depreciation of the peso,” the central bank said in a statement on Thursday.
Meanwhile, the peso breached the P59-level on Tuesday, slipping by 23 centavos to P59.13 per US dollar from its P58.90 finish on Monday, Bankers Association of the Philippines data showed.
This was the weakest peso performance in history, exceeding the previous record of P59 on Dec. 19, 2024.
The BSP said lower prices of oil, meat and fruits could partially temper inflationary pressures during the month.
“Going forward, the BSP will continue to monitor evolving domestic and international developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” the central bank said.
The Philippine Statistics Authority is set to release the October inflation data on Nov. 5.