MANILA – Philippine monetary officials forecast on domestic inflation for November 2019 is between 0.9 to 1.7 percent. This range is higher than the 0.8-percent inflation rate last October but far lower than the six percent on November last year.
In a statement Friday, the Bangko Sentral ng Pilipinas (BSP) said its Department of Economic Research forecasts for November might be driven by higher electricity rates, prices of gasoline, liquefied petroleum gas, and select food items.
“Meanwhile, inflation could be tempered by lower domestic rice prices and the appreciation of the peso,” it said.
“Looking ahead, the BSP will remain watchful of evolving inflationary conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” it added.
After peaking at 6.7 percent in September and October 2018, the domestic inflation rate has generally declined to 0.8 percent last October.
The average inflation rate in the first 10 months this year stood at 2.6 percent, at the lower half of the government’s two to four-percent target range until 2021.
The 2020 and 2021 average inflation forecast was kept at 2.9 percent.
BSP governor Benjamin Diokno on Monday raised the possibility of another reduction in the BSP’s key policy rates after the 75 basis points cut so far this year as inflation continues to decelerate.
The cuts were implemented this year after the key rates were increased by a total of 175 basis points last year to help reign on inflation expectations as a result of the increase in domestic rice prices. (PNA)
