BSP sees November inflation to accelerate within 7.4%-8.2%

The Bangko Sentral ng Pilipinas (BSP) is expecting the inflation rate to remain elevated this month amid higher prices of electricity, liquefied petroleum gas prices, and agricultural commodities.

In its month-ahead inflation forecast, the BSP said the November inflation print is expected to settle within 7.4% to 8.2% range.

The upper-end of the forecast range is faster than the near 14-year high October inflation rate of 7.7%.

“Upward price pressures for the month are expected to emanate from higher electricity rates, uptick in the prices of agricultural commodities due to severe tropical storm Paeng, and higher LPG prices,” the BSP said.

“Meanwhile, the reduction in petroleum and pork prices as well as the peso appreciation could contribute to easing price pressures for the month,” it said.

The Philippine Statistics Authority is scheduled to release official inflation figures for November on December 6, 2022.

Despite the higher inflation expectation, the BSP said it is projected to gradually decelerate in the succeeding months “as the cost-push shocks to inflation due to weather disturbances and transport fare adjustments dissipate.”

“The timely implementation of non-monetary measures will also help temper price pressures in the months ahead,” the BSP said.

The central bank said it continues to monitor closely emerging price developments to enable timely intervention that could help prevent the further broadening of price pressures, in accordance with the its price stability mandate. — RSJ, GMA Integrated News