Metro Manila, Philippines – Full-year inflation rate average might settle at 3.2%, according to a forecast of the Bangko Sentral ng Pilipinas (BSP), halfway in the government target.
The economic policy-setting Development Budget Coordination Committee (DBCC) earlier said its inflation rate assumption for the year was 3.1% to 3.3%. The target is 2% to 4%.
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The BSP cited a number of reasons for its inflation forecast for December at 2.3%-3.1%.
“Upward price pressures in December could stem from increased prices of major food items owing to the supply disruptions from recent weather disturbances, as well as higher electricity rates and petroleum prices,” the central bank said.
“Nonetheless, these are expected to be offset in part by lower prices of agricultural commodities like rice,” it added.
Inflation target for the next four years is still at 2%-4%, the BSP said in a separate statement as per the Dec. 2 meeting of the DBCC.
“The inflation target range of 2.0 – 4.0 percent remains an appropriate representation of the medium-term goal for price stability, given the current structure of the Philippine economy and the macroeconomic outlook over the next few years,” the BSP said.
“Prospects for aggregate demand and supply-side conditions point to a manageable inflation outlook despite upside risks,” it also said.
