BSP Predicts October Inflation to Drop to 5.1% to 5.9%

Manila — The Bangko Sentral ng Pilipinas (BSP) has projected a deceleration in the inflation rate for October, estimating it to fall between 5.1 percent and 5.9 percent. This prediction comes despite observed increases in the prices of select food items, cooking gas, jeepney fares, and power rates.

According to Philippines News Agency, various factors are contributing to the inflationary pressures in October. These include hikes in electricity rates, liquefied petroleum gas prices, and the minimum jeepney fare for both traditional and modern jeepneys, which rose to PHP13 and PHP14, respectively. However, the central bank also highlighted that the decrease in prices of rice, meat, and vegetables, coupled with reductions in oil prices, is anticipated to exert downward pressure on the inflation rate.

“Going forward, the BSP will continue to closely monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” the statement affirmed.

As of the end of the third quarter, the inflation rate averaged at 6.6 percent, significantly surpassing the central bank’s target range of 2 percent to 4 percent, set to be maintained until 2024. The inflation rate for September stood at 6.1 percent, marking the second consecutive month of increase following a six-month declining trend influenced by the rise in oil prices internationally. BSP Governor Eli Remolona anticipates that the inflation rate will remain elevated until the first half of 2024, with expectations for it to return within the target band by the third quarter of the following year.