BSP expects inflation to go down further in 2019 and 2020

February 5, 2019

The Bangko Sentral ng Pilipinas (BSP) said Tuesday the January inflation figures follow a path where it is projected to go down further in 2019 to 2020.

The Philippine Statistics Authority (PSA) announced that January inflation reached 4.4 percent, down from December's 5.1 percent.

“ Domestic supply-side pressures are seen to further ease, while the impact of BSP monetary policy adjustments in 2018 is expected to continue to work their way through the economy,'' the BSP statement said.  ''Volatility in the global oil market will likely continue to influence the outlook for inflation.''

The BSP will hold its monetary policy meeting on Thursday to decide if the current policy rates stay. The central bank raised policy rates by 1.75 percentage point as inflation soared to a near-decade high of  6.7 percent in September and October 2018. DMS