Consumer-price expansion across the broad economy likely kept within target in January, as price pressures remained broadly balanced during the period.
In his monthly forecast, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. projected inflation falling within the 2.3 percent to 3.2-percent range for the period.
This was squarely within forecast range a month earlier when inflation averaged 2.6 percent. This, however, represented an acceleration from inflation averaging 1.3 percent in
January last year.
“Downward price pressures include a slight decline in rice prices and lower power rates in Meralco-serviced areas,” Tetangco said.
“However, higher domestic prices of gasoline, diesel and LPG, as well as the excise-tax adjustments for alcoholic beverages and tobacco products would likely exert upside pressures on inflation during the month,” he added.
At the most recent rate-setting meeting, the central bank said inflation was expected to rise to an average of 3.3 percent, from earlier forecast of 3 percent.
For 2018, inflation was seen to hit 3 percent, also up from the November forecast of 2.9 percent.
It was from this viewpoint that the BSP kept the monetary-policy settings unchanged another last December 22.
For 2017, the BSP chief said they will continue to monitor price movements, confident that inflation will return to within the 2-percent to 4-percent target.
“Moving forward, the BSP will continue to monitor emerging price conditions to ensure price stability conducive to a balanced and sustainable economic growth,” Tetangco told reporters.