Philippines central bank sees inflation ‘back to normal’ near 3% later this year

Bangko Sentral ng Pilipinas Governor Felipe Medalla poses for a photograph in his office at Manila, Philippines, Nov 18, 2022. REUTERS/Eloisa Lopez/File photo

MANILA  – Philippine inflation is likely to be closer to 3 percent in late-2023 and in 2024, central bank governor Felipe Medalla said on Tuesday.

Medalla, speaking at a media forum, also said the economy remained strong and that pent-up domestic demand will continue driving growth.

“By the third quarter of this year, inflation will be back to normal,” he said.

Annual inflation soared to 8.1 percent in December, the highest since 2008, bringing the full-year average to 5.8 percent, outside the central bank’s 2 percent-4 percent target range.

The central bank earlier this month said it was ready to take all policy action necessary to bring inflation back within the target.

Monetary authorities are meeting for a rate setting meeting on Feb. 16.