PH inflation likely picked up in October
Higher oil and food prices and a weaker peso likely caused inflation to accelerate in October to between 2 and 2.8 percent from a four-year low of 1.9 percent in September, according to the Bangko Sentral ng Pilipinas.
The BSP noted in its inflation outlook that October saw higher prices of vegetables, fruits and fish and petroleum products. The impact, however, may be softened by lower prices of rice and meat along with lower electricity rates.
The latest projection would put the year-to-date average from 3.29 percent to 3.37 percent, which remains well within the BSP’s inflation target for the year of 2-4 percent.
“Going forward, the Monetary Board will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment,” it added.
Last month, headline inflation fell sharply to its lowest rate in more than four years of 1.9 percent, driven by a slower rise in costs for food, transport, housing and utilities like water, according to the Philippine Statistics Authority (PSA).
This was markedly slower than the 3.3 percent in August and 6.1 percent last year.
Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort, meanwhile, estimates that October inflation will settle at 2.4 percent.
“The 1.9 percent inflation for September 2024 could already be the lowest for 2024, largely due to higher base or denominator effects,” he said in a Viber message.
He also cited the possible temporary spike in prices of some commodities due to the impact of severe tropical storm “Kristine.”
