Metro Manila (CNN Philippines) — The Bangko Sentral ng Pilipinas (BSP) officials forecast a slight rise in prices of basic goods and services in 2016 because of the impact of El Niño.
Officials said on Friday (January 22) the stronger-than-expected El Niño may raise food and utility prices.
The BSP also considered the impact of typhoons that may come in the second half of the year.
It said the pending power rate hike petitions may also put pressure on prices.
Analysts polled by BSP said inflation this year may settle at an average of 2.5 percent — still within the 2 to 4 percent official target.
The BSP said any price adjustments will be tempered by sliding fuel prices, a weak global economy, and transport fare cuts.
Officials added the economy will remain resilient on the back of strong consumer demand.
Inflation last December was at 1.5 percent. The full-year average was 1.4 percent.
