BSP sees December inflation within 2.9% to 3.7% range

The Bangko Sentral ng Pilipinas (BSP) said Tuesday it expects the inflation rate in December to pick up slightly due to higher fuel and food prices during the period.

“The BSP projects December 2020 inflation to settle within the 2.9% to 3.7% range,” BSP Governor Benjamin Diokno said in a statement.

The upper end of the forecast range is slightly higher than November’s inflation print of 3.3%. 

“Higher prices of domestic petroleum products and key agricultural items contributed to upward price pressures during the month,” Diokno said.

The expected faster inflation this month could be partly offset by the downward adjustment in electricity rates in Meralco-serviced areas, along with slightly lower rice prices and the continued appreciation of the peso, according to the central bank chief.

To recall, Meralco slashed electricity rates by P0.0352 per kilowatt-hour (kWh) to P8.4753 per kWH, which is equivalent to a decrease of around P7 in the total bill of residential customers consuming 200 kWh. 

“Looking ahead, the BSP will continue to monitor economic and financial developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” Diokno said. — BM, GMA News