BSP cheers 0.9 inflation but warns of higher prices during holidays

One of the loudest cheers at the 0.9 inflation rate in September came from the Bangko Sentral ng Pilipinas (BSP) which had forecast an inflation range of 0.6 to 1.4 percent, nearly hitting the exact mark.

The BSP, however, warned against risks that a global trade war could bring. The United States is continuing its tense trade relations with China while the World Trade Organization allowed the US to impose tariffs on several European Union goods.

In a statement, the BSP said the 0.9 inflation rate was “driven by continued decline in rice prices and electricity rates which offset higher prices of petroleum and selected food products.”

September inflation, lowest in three years, was consistent with assessment that inflation would continue to skid downhill in the third quarter of 2019 but pick up slightly in the fourth quarter, said the BSP./TSB