MANILA – Monetary officials forecast a flat movement in the rate of price increases for October 2020 at 2.3 percent, similar to the previous month's level.
In a Viber message to journalists Friday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the central bank’s Department of Economic Research (DER) projects this month’s inflation rate to range between 1.9-2.7 percent.
He said upticks in power rates in areas being serviced by the Manila Electric Company (Meralco), along with hikes in the prices of liquified petroleum gas (LPG) and kerosene and higher prices of select food items because of the impact of weather disturbances are seen to accelerate inflation rate this month.
These factors are, however, seen to be countered partly by lower prices of gasoline, diesel, and rice, and a drop in water rates in areas being serviced by the Manila Water and Maynilad.
“Looking ahead, the BSP will remain watchful of economic and financial developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” he said.
Monetary authorities had forecast inflation to remain manageable until 2022 and stay within the 2-4 percent target band for the three-year period.
They even project inflation rates in December this year and January next year to fall below 2 percent due to higher rates in the respective year-ago levels.
This year’s inflation is seen to average at 2.3 percent while it is 2.8 percent for 2021 and 3 percent for 2022.
As of end-September this year, inflation averaged at 2.5 percent. (PNA)
