BSP sees October inflation within 6.2% to 7%

October 31, 2018

The Bangko Sentral ng Pilipinas ( BSP) October inflation to settle within the 6.2 to 7.0 percent range, the central bank's Department of Economic Research said Wednesday.

"This corresponds to a month-on-month inflation forecast range of -0.2 to 0.6 percent, which is in line with the BSP’s assessment that inflation is likely to have peaked in Q3 2018 in the absence of further price shocks," the department said in its report.

Inflation reached 6;.7 percent, a near 10-year high, in September, marking the straight month of increase. The central bank has responded with an increase of 1.5 percentage points in its policy rates since May to curb inflation.

"Upward price pressures from domestic petroleum prices and water rates in Manila Water and Maynilad-serviced areas could be offset by the lower prices of rice and other food items as well as the downward adjustment in Meralco power rates," it added.

Moving forward, the BSP will continue to closely monitor evolving trends in prices and inflation expectations, and will undertake necessary measures towards its commitment to price stability," it said. DMS