BSP expects January inflation to slow down within 2.8% to 3.6% range

The Philippines’ inflation is expected to remain on a deceleration path in the first month of 2024, according to the estimates of the Bangko Sentral ng Pilipinas (BSP).

In its month-ahead inflation forecast released Wednesday, the BSP said January’s inflation rate would settle within the range of 2.8% to 3.6%.

The upper end of the forecast range is lower than the 3.9% inflation print recorded in December 2023. 

The BSP said lower prices of vegetables and sugar could contribute to downward price pressures. 

However, the central bank said higher prices of some agricultural items, like rice, meat, fruits, and fish, along with increased petroleum prices, electricity and water rates, annual adjustment in sin taxes, and the depreciation of the peso are the primary sources of upward price pressures for the month. 

“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making,” it said.

The Philippine Statistics Authority is scheduled to release the official January inflation figures on February 5, 2024.—AOL, GMA Integrated News