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People visit market stalls in Divisoria, Manila on November 2, 2021. George Calvelo, ABS-CBN News/File
MANILA - Inflation eased to a 3-month low of 4.6 percent in October despite high fuel prices, the state statistics bureau said on Friday.
This followed the 4.8 percent inflation rate registered in September.
Inflation slowed to 4.6 percent in October. Data: Philippine Statistics Authorities/Processed by: ABS-CBN Data Analytics
October's inflation was within the 4.5 percent to 5.3 percent range forecast by the Bangko Sentral ng Pilipinas.
The slower pace in the rise of prices particularly in the transport sector is expected to continue for the rest of the year, BDO Unibank chief market strategist Jonas Ravelas said.
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“I think this is something that will continue between now and the end of the year. So most likely, fading base effects will keep inflation on a downward trajectory. We’re looking at full year inflation at around 4.3 percent,” Ravelas said.
ABS-CBN Data Analytics charts on PH October inflation. The Philippines still has a higher inflation rate compared to other major ASEAN economies. pic.twitter.com/80FKy3hA4w
BSP Governor Benjamin Diokno said the recent fuel subsidy grant for public utility vehicles and the increase in ridership capacity "can help support the transport sector and help prevent second-round effects amid rising oil prices."
The government's annual inflation target is 2 to 4 percent. Inflation however has remained elevated this year, and has yet to dip below 4 percent, with food and fuel prices remaining high.
The BSP has said that it expects inflation to ease in the coming months and that monetary policy will remain accommodative to support the country's recovery from the disruptions of the COVID-19 pandemic.
"The balance of risks to the inflation outlook remains on the upside for the remaining months of 2022, but continues to be broadly balanced for 2022 and 2023," Diokno said.
The BSP will have its next policy-setting meeting on Nov. 18.
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