Notably lower prices of farm products as vegetables, fruits and fish helped slow inflation in December to as low as 3.6 percent, the Bangko Sentral ng Pilipinas said on Friday.
The forecast is even better than that estimated by analysts at Moody’s Analytics who the day before forecast inflation at 3.7 percent.
According to the BSP, the rate at which prices change at the peak of Yuletide celebrations should not top 4.4 percent as apex of the projected range.
“The BSP projects December 2023 inflation to settle within the range of 3.6 to 4.4 percent. Higher prices of rice and meat are seen as the primary sources of upward price pressures in December,” the BSP said.
Lower prices for agricultural items such as vegetables, fruits, and fish along with lower electricity rates and petroleum prices are expected to contribute to downward price pressures, the BSP added.
Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making.
