BSP says December inflation confirms assessment goals for 2019-2020 can be met

January 4, 2019

The Bangko Sentral ng Pilipinas said the 5.1 percent December inflation data " confirms further the BSP's earlier assessment that the inflation target for 2019 - 2020 shall be achieved.'' In September, the central bank revised the inflation target for 2018 from 4.9 percent to 5.2 percent, which was attained according to the Philippine Statistics Authority (PSA) in a press conference on Friday. For 2019, the BSP set the average at 4.3 percent from 3.7 percent while putting a goal of 3.2 percent in 2020. As inflation soared in January to reach a nine-year-high of 6.7 percent in September, the central bank tightened policy rates to a total of 1.75 percentage points. "The latest inflation outturn confirms further the BSP's earlier assessment that the inflation target for 2019 - 2020 shall be achieved. The within-target inflation outlook over the policy horizon largely reflects  the estimated impact of the rice tariffication law, lower global oil prices, and latest monetary policy adjustments by the BSP," a statement by the central bank said Friday. But, the central bank said it will watch price developments in the country closely. It said: "It shall consider all relevant information at its next monetary policy meeting on February 7 2019 to ensure that the monetary policy stance remains consistent with the BSP’s primary mandate of price stability.” DMS