Inflation, which averaged sharply lower to only 4.9 percent in October, is projected to ease further in November, according to the Bangko Sentral ng Pilipinas.
The BSP projects the November inflation to settle within the range of 4 percent to no more than 4.8 percent.
“Higher prices of most agricultural commodities like rice, fruit, fish, and meat items and adjustments in electricity, LPG, and toll rates are the primary sources of upward price pressures in November.
Meanwhile, lower prices of vegetables and petroleum products along with the peso appreciation could contribute to downward price pressures,” the BSP said.
Inflation, which steadily fell from 8.7 percent in January to a low of 4.7 percent by July, pushed higher over the next two months thereafter to 6.1 percent on food price inflation, particularly rice. A combination fiscal and monetary responses and an off-cycle interest rate adjustment by the policy-making monetary board of the BSP helped re-anchor inflation closer to the target at 4.9 percent in October.
Going forward, the BSP said it will continue to monitor developments affecting the outlook for inflation and growth in line with its data dependent approach to monetary policy formulation.
