MANILA - The Philippines is retaining its 2 to 4 percent inflation range target until 2024, the Bangko Sentral ng Pilipinas said on Tuesday.

The BSP said Philippine economic managers decided to maintain the inflation target range for 2022 up to 2024 after consulting with the central bank.

The inflation target range of 3 percent (plus or minus 1 percent) continues to be an appropriate quantitative representation of the medium-term goal of price stability given the current structure of the economy and outlook for macroeconomic conditions over the next few years, the BSP said.

"Under the inflation targeting framework for monetary policy, the target is defined in terms of the average year-on-year change in the consumer price index (CPI) over the calendar year."

The BSP said the economic recovery continues to be robust but the economy is likely to operate below its full capacity in the near term. But domestic recovery is expected to gain traction over the medium term, as the government hastens its vaccination program and the easing of mobility restrictions, the central bank said.

"Low and stable inflation—as represented by the inflation target—remains supportive of the ongoing recovery process and the attainment of the goal of sustainable and balanced growth."

Global prices of oil, food and other commodities are expected to ease after the spikes in 2021, the BSP said, but added that considerable risks continue to surround the prospects for global commodity prices.

Inflation expectations likewise remain well anchored to the target, the central bank said.

"Going forward, the BSP will continue to monitor closely price developments and stands ready to adjust its policy settings as needed to keep inflation within target."

While the BSP said at the start of the year that inflation was the least of its worries, inflation stayed above the BSP target for most of the year as food costs went up in the earlier months, followed by fuel prices in the later months.

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