Inflation rate skated downhill further, attributed largely to low rice prices.
This, according to the Bangko Sentral ng Pilipinas (BSP), reinforced policy maker’s recent decision to reduce borrowing costs and pump prime the economy.
In a statement, the BSP said its economists saw inflation to skate between the 0.6 to 1.4 percent range, lower than 1.7 percent in August.
In an earlier report, economists polled by the Inquirer said they expected inflation to range between 0.9 to 1.4 percent.
BSP economists, however, would not throw caution to the wind, saying threats to inflation were lurking around the corner—higher fuel prices and higher prices of some food items as a result of bad weather.
BSP Governor Benjamin Diokno, in a note to reporters, said average inflation was expected to settle at 2.5 percent for the entire 2019 which was lower than the 2.6 percent registered in August.
The revised forecast is also substantially lower than the government’s official target range for the year of 3 percent, plus or minus 1 percent.
The Philippine Statistics Authority is scheduled to announce the September inflation rate on Oct. 4, Friday./TSB