Inflation seen to accelerate at 2-2.8% in October

The country’s inflation rate is expected to snap its two-month deceleration streak this month amid higher food and fuel prices seen in October, the Bangko Sentral ng Pilipinas (BSP) said Thursday.

In its month-ahead inflation forecast, the BSP said it projects October 2024 inflation to settle within the range of 2% to 2.8%. 

The projected range is above the 1.9% inflation print recorded in September. 

Last month’s inflation —which measures the rate of increase in the prices of goods and services— was a sharp decline from the 3.3% rate in August.

It was also the lowest print since May 2020, when inflation clocked in at 1.6%.

“Higher prices of food commodities such as vegetables, fruits, and fish as well as the increase in prices of domestic petroleum products and the peso depreciation are the primary sources of upward price pressures for the month,” the BSP said.

The central bank added that lower prices of rice and meat along with reduced electricity rates are expected to offset the upward risks to inflation this month.

“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 said.—AOL, GMA Integrated News