BSP sees inflation settling at 2 to 4 percent this year

The 5.1 percent inflation rate last December means the government is poised to meet its target of 2 to 4 percent this year until 2020, the Bangko Sentral ng Pilipinas (BSP) said Friday.

The BSP issued its observation after the Philippine Statistic Authority announced that inflation came in at 5.1 percent due to slower yearly increases in prices of food, non-alcoholic beverages, and transport.

Last month’s inflation was also the slowest since June 2018.

“The latest inflation outturn confirms further the BSP’s earlier assessment that the inflation target for 2019 to 2020 will be achieved,” the BSP said.

The central bank’s inflation forecast reflects the impact of the Rice Tariffication law, lower global oil prices, and its monetary policy adjustments.

“The BSP continues to keep a close watch over price developments in the country and will consider all relevant information at its next monetary policy meeting on February 7 to ensure that the monetary policy stance remains consistent with the BSP’s primary mandate of price stability,” the central bank said.

The Palace, for its part, claimed credit for December’s inflation rate.

The 5.1 percent inflation rate proves that the government provided the people with the remedies against prices of basic goods and services, presidential spokesperson Salvador Panelo said in a separate statement.

The average inflation rate for the whole of 2018, however, reached 5.2 percent—an 11-year high—according to the statistics office.

“The President and this administration will not fall into complacency. Filipinos can expect that we will remain vigilant as we continue to monitor the prices of basic goods and commodities, and implement measures to further ease the burden of our countrymen,” Panelo said. —VDS, GMA News