MANILA, Philippines — The country’s inflation rate is still on track to decrease over the upcoming quarters, according to the Bangko Sentral ng Pilipinas (BSP).
This assessment by the central bank came after the Philippine Statistics Authority (PSA) reported an uptick in the annual inflation rate for October.
On Tuesday, PSA reported that the consumer price index (CPI) increased by 2.3 percent year-on-year in October 2024 from 1.9 percent in September. CPI indicates changes in the average retail prices of a fixed basket of goods and services commonly purchased by households, relative to a base year, according to the firm.
READ: Philippine inflation rises to 2.3% in October
According to the PSA, higher prices of food, nonalcoholic beverages, and transport drove the increase in headline inflation.
Earlier, BSP had forecast inflation for October to fall between 2.0 and 2.8 percent, citing higher prices for vegetables, fruits, fish, and petroleum products.
The latest PSA data places the year-to-date average inflation rate at 3.3 percent, well within the central bank’s aim to maintain inflation between 2.0 and 4.0 percent.
In a separate statement on Tuesday, BSP said that despite the rise in the year-to-year rate, it still expected inflation to trend toward its 2.0 percent threshold.
“The latest inflation outturn is consistent with the BSP’s assessment that inflation will continue to trend closer to the low end of the target range over the succeeding quarters,” it said.
READ: PH inflation likely picked up in Oct
“Nonetheless, the balance of risks to the outlook for 2025 and 2026 has shifted toward the upside,” the BSP continued.
“Upside risks to the inflation outlook could emanate from the potential adjustments in electricity rates and higher minimum wages in areas outside Metro Manila, while downside factors continue to be linked to the impact of lower import tariffs on rice,” it added.
Additionally, BSP maintained that the Monetary Board will keep a “measured approach” in its easing cycle.
The Monetary Board will meet for the final time in 2024 on December 19.