The country’s inflation rate, on the decline for nearly the entire 2019, will most likely settle at 0.8 percent in October but jump slightly as a result of a normal occurrence during the holidays—increased demand for goods.
But the Bangko Sentral ng Pilipinas (BSP) said rate of increase in consumer prices was likely to stay muted in the medium term except for short-term spikes caused by oil price changes.
The inflation figure for October, the BSP said, was “consistent” with assessment that “inflation has likely bottomed out” during the month.
In a statement, the BSP said it continues to expect average inflation to firmly settle within the target range of 3 percent, plus or minus 1 percentage point for 2019 – 2021.
The monetary regulator noted that global crude oil prices have started to stabilize following the recent volatility caused by geopolitical tensions in the Middle East, but stressed that deepening trade tensions between China and the US along with other countries in the region have raised global economic uncertainty, “which pose a downside risk to the inflation outlook.”
The central bank’s assessment that inflation had reached bottom was echoed by private sector economists who noted that the consumer price index had “nowhere to go but up” henceforth. /TSB