Latest Stories

Nov. inflation seen at 2.7-3.6%

Strong peso helped temper price hikes


The inflation rate in November is expected to remain benign, as the appreciation of the peso against the dollar helped temper the rise in the cost of oil and other imported goods.

This was according to the Bangko Sentral ng Pilipinas, which is projecting an inflation rate of between 2.7 percent and 3.6 percent. Monetary authorities consider this range manageable.

“Supply conditions remained favorable, while demand continued to be robust. Oil prices were broadly stable, while the peso’s relative firmness helped support price stability,” BSP Governor Amando Tetangco Jr. told reporters.

Should the central bank’s inflation estimate for November materialize, the average increase in consumer prices for the first 11 months of the year should be between 3.1 percent and 3.2 percent.

In January to October, inflation averaged 3.2 percent.

The government is targeting a full-year inflation rate of between 3 and 5 percent for this year and the next two years.

The peso has been one of the strongest-performing Asian currencies so far this year, appreciating by more than 6 percent since January. It is now nearing the 40-to-a-dollar territory compared to the 43-to-$1 level at the start of the year.

The strengthening of the peso had helped temper the rise in the local prices of goods and services.

Certain sectors, however, have complained about the peso appreciation. Exporters said a strong peso made Philippine-made goods more expensive in dollar terms, rendering them less competitive in the world market. Overseas Filipino workers are also adversely affected by the peso’s strengthening, as this results in the shrinking of the peso value of the dollars they send to their families back home.

Given this backdrop, the BSP has been asked to intervene in the foreign exchange market to deliberately weaken the peso’s value against the US dollar. The central bank, however, said it could not be biased in favor of a strong or weak peso, noting that exchange rate movements affect various sectors differently.

In the meantime, the BSP said projections that inflation would remain benign until 2014 indicated that the existing monetary policy remained appropriate.

The BSP has kept its policy rates at record lows of 3.5 and 5.5 percent for overnight borrowing and lending, respectively.

“Our current policy stance remains consistent with prevailing monetary and price conditions,” Tetangco said.

He added, however, that the BSP was willing to immediately adjust existing monetary policies should need arise.

“We will continue to be watchful of any emergent risks that could alter the inflation outlook and expectations, and calibrate monetary policy as warranted,” Tetangco said.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: forecasts , Inflation , Philippines

  • help_our_country

    The lower the inflation rate the better for us here in the country but infavor to those OFW & Exporter.IMHO, the inflation rate should be at a win-win solution to all concerns.Help our country to become one of the progressives.Thanks 

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Drunk passenger triggers Bali hijack alert
  • Businesswoman allegedly killed by husband, brother-in-law
  • Roxas suspended from golf club for outburst over P5,000 guest fee
  • SC reschedules oath-taking of new lawyers
  • Ex-COA chief seeks bail after arrest for plunder
  • Sports

  • Guiao fined P100,000 for ‘mongoloid’ comment vs Meralco forward
  • Hawks and Grizzlies revel in home wins
  • Floyd: Manny’s power gone
  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Plane lands at Bali airport in suspected hijacking—Indonesia air force
  • Obama lands in Seoul as N. Korea nuclear test fears grow
  • Militant protests vs Obama, US set
  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Marketplace