BSP sees December inflation to be swifter at 3.1%

The country’s inflation rate is expected to continue its acceleration streak for the third straight month in December as recent storms were seen to have caused supply constraints which put pressure on commodity prices.

In its month-ahead inflation forecast, the Bangko Sentral ng Pilipinas said this month’s inflation could clock in within the range of 2.3% to 3.1%.

The upper-end of the forecast range is faster than the 2.5% inflation print seen in November.

For the entire 2024, the central bank is expecting the inflation rate to settle at 3.2%.

“This expected full year average inflation is also well within the inflation target of 2% to 4% for 2024,” the BSP said.

The central bank said that upward price pressures in December could stem from increased prices of major food items owing to the supply disruptions from recent weather disturbances, as well as higher electricity rates and petroleum prices. 

“Nonetheless, these are expected to be offset in part by lower prices of agricultural commodities like rice,” it said.

“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,” the central bank added.

The Philippine Statistics Authority is scheduled to announce the official inflation figures for December on January 7, 2025.—AOL, GMA Integrated News