MANILA (UPDATE) - Inflation for the month of November decelerated further to a 4-month low of 4.2 percent as some food prices stabilized, the state statistics bureau said Tuesday.

The consumer price index rose 4.2 percent or at a slower pace compared to the 4.6 percent the previous month, the Philippine Statistics Authority said in a virtual briefing.

The figure still breached the upper band of the government target of 2 to 4 percent. The BSP expected inflation for the month to settle at 3.7 percent.

Although inflation for the month is slightly higher than anticipated, it is still projected to fall within target in 2022 and 2023 as supply-side pressures moderate, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in a statement.

Upside risks are linked to weather disturbances and prolonged recovery of domestic food supply as well as strong global demand and persistent supply chain bottlenecks, the central bank said.

Meanwhile, potential delays in the lifting of local lockdown measures as well as new COVID-19 variants could "dampen" prospects for global and domestic demand and "temper" inflationary pressures, it said.

"The risks to the inflation outlook are on the upside for 2022 but remain broadly balanced for 2023," the BSP said.

Despite inflation hovering above the target for several months, Diokno has said that the trend remains "transitory" and does not warrant a tightening of monetary policy.

The BSP has kept its benchmark interest rate at a record-low 2 percent for a year now with only 1 monetary policy-setting meeting left for the year.

Economic managers have said inflation could settle back within the mid-range of the government target by next year.

• Inflation slows down to 4.6 percent in October

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