Inflation likely at 7.4 to 8.2 percent in November: BSP


Posted at Nov 30 2022 08:56 AM

MANILA - Inflation in November may settle between 7.4 percent to 8.2 percent range, a Bangko Sentral ng Pilipinas think tank said.

November's forecast could exceed the 7.7 percent inflation the previous month. 

Last month's consumer price index is also expected to remain above the government's 2 to 4 percent target range. 

Upward price pressures are from higher electricity rates, higher prices of agricultural commodities due to Tropical Storm Paeng as well as higher LPG prices, the BSP's Department of Economic Research said in a statement.

Meanwhile, the reduction in petroleum and pork prices as well as the stronger peso against the US dollar may offset the price pressures for the month, it said.

Although expected to remain elevated for the rest of the year, "inflation is projected to gradually decelerate in the succeeding months as the cost-push shocks to inflation due to weather disturbances and transport fare adjustments dissipate," the BSP said.

"The timely implementation of non-monetary measures will also help temper price pressures in the months ahead," it added.

The BSP in November implemented a 75-basis points interest rate hike to match the US Federal Reserve, cool down inflation and stabilize the peso. This brought the benchmark borrowing rate to 5 percent.


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