October inflation likely within 1.4% to 2.2% - BSP

Manila, Philippines – Inflation last month could have probably accelerated by as much as 2.2 percent on the back of a weaker peso that made imports like rice more expensive.

The Bangko Sentral ng Pilipinas (BSP) tipped a range of 1.4 to 2.2 percent ahead of the official release of the October inflation data next week.

“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 BSP said in a statement.

The peso had been hitting record lows this week to a trough of P59.26 against the dollar, as risk-averse investors doubted the economy’s resilience amid a backlash from a corruption scandal. Yield-seeking investors meanwhile have been dumping Philippine assets like stocks and bonds in favor of safe-haven gold and dollar.

“These pressures could be partially offset by lower prices of oil, meat, and fruits,” the BSP said.

Inflation averaged 1.7 percent in the nine-months ending September, well below the central bank goal for 2025. But that tame reading was not on the back of soft domestic demand that clouds economic prospects over the short term.

NewsWatch Plus business news anchor Lois Calderon contributed to this story.