By Luisa Maria Jacinta C. Jocson, Reporter
Headline inflation can have accelerated in November but still remained throughout the 2-4% goal band, the Bangko Sentral ng Pilipinas (BSP) said.
The central bank’s month-ahead forecast showed that inflation likely settled throughout the 2.2%-to-3% range in November, slower than the 4.1% print in the identical month a 12 months ago.
Nonetheless, the upper end of the forecast can be faster than the two.3% recorded in October.
The Philippine Statistics Authority (PSA) is scheduled to release November inflation data on Dec. 5.
“Increased prices of vegetables, fish, and meat as a consequence of unfavorable weather conditions, higher electricity rates and petroleum prices, and the depreciation of the peso are the first sources of upward price pressures this month,” the BSP said in a press release.
The Philippines was hit by several storms this month. Latest data from the Agriculture department showed that agricultural damage as a consequence of tropical cyclones Nika, Ofel and Pepito reached P785.68 million.
In November, pump price adjustments stood at a net increase of P1.7 a liter for gasoline, P3.2 a liter for diesel and P1.6 a liter for kerosene.
Manila Electric Co. (Meralco) also raised the general rate by P0.4274 per kilowatt-hour (kWh) to P11.8569 per kWh in November from P11.4295 per kWh in October.
The peso sank to the P59-per-dollar level twice this month to date, hitting the record low on Nov. 21 and 26.
The BSP earlier attributed this to the stronger dollar amid rising geopolitical tensions.
However, the risks to the inflation outlook are seen to be offset by lower prices of rice, the central bank added.
National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said on Friday that inflation is predicted to “stay comfortably” throughout the 2-4% goal range.
“We don’t think that the (November) number will breach our goal of 2-4%,” he said, though noted that if there’s a pickup in prices, this might be “marginal.”
Mr. Balisacan also noted the BSP’s easing cycle will support the economy.
“We expect the BSP’s decision to chop policy rates by a cumulative 50 basis points and reduce reserve requirements to spice up liquidity to spur growth in private spending,” he said.
“Particularly on big-ticket consumer items and investments in capital-intensive infrastructure in the approaching quarters, which we see as one other significant economic growth driver.”
The BSP said it “will proceed to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment.”
Since August, the central bank has reduced borrowing costs by 50 basis points, bringing the important thing rate to six%.
