Inflation “peaked in third quarter 2018 but could remain elevated for the rest of the year”: BSP

November 6, 2018

The Bangko Sentral ng Pilipinas ( BSP) said the inflation rate "peaked in the third quarter 2018 but could remain elevated for the rest of the year."

The Philippine Statistics Authority (PSA) said inflation for October reached 6.7 percent, the same as September. It remains at a nine-year high.

The BSP, in a statement Tuesday, said "the start of the harvest season for rice and improved weather conditions have contributed to some downward price pressures on rice prices."

"The implementation of non-monetary measures is also expected to result in a deceleration in food prices," the BSP said.

Approval of Congress of rice tarrification "could lead to an earlier return to within target inflation in 2019 and to approach the midpoint of the target range in 2020," the central bank said.

The BSP said it will continue to monitor the evolution of expectations and further second-round effects ahead of the November policy meeting.

The BSP said it remains firm in its commitment and readiness to take all necessary policy actions to address the threat of high inflation and deliver on its primary mandate of price stability.

The central bank had raised policy rates by 1.5 percentage points this year to curb inflation. DMS