The Bangko Sentral ng Pilipinas (BSP) on Friday, January 31, expects the country’s January headline inflation to settle between 2.5% and 3.3% due to the rise in fuel prices and major food items.
The country’s central bank issued the month-ahead inflation forecast as the Philippine Statistics Authority will release the inflation data on Wednesday, February 5.
“Upward price pressures in January stem from the rise in petroleum prices, increased prices of major food items owing to the lingering effects of recent weather disturbances, as well as the annual adjustments in water rates and sin taxes,” the BSP said in a statement.
“Going forward, the Monetary Board will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment,” the BSP added.
Inflation in the Philippines rose to 2.9% in December due to higher power rates and housing costs. Food inflation remained at 3.5% in December 2024, down from 5.5% in December 2023.
Meanwhile, pump prices dropped in the last week of January following three weeks of consecutive oil price hikes. (TCSP)
