The Bangko Sentral ng Pilipinas ( BSP ) anticipates December 2024 inflation to range between 2.3 percent and 3.1 percent, resulting in an average inflation of 3.2 percent for the year. This remains within the 2 percent to 4 percent inflation target set for 2024. November saw inflation reach 2.5 percent.
The BSP attributes potential upward price pressures in December to increased food prices due to supply disruptions caused by recent weather events, as well as higher electricity and petroleum prices. However, these pressures are expected to be partially mitigated by lower agricultural commodity prices, such as rice. The BSP will continue to monitor developments impacting inflation and growth, adhering to its data-driven approach to monetary policy. The Development Budget Coordination Committee (DBCC), in collaboration with the BSP, has decided to maintain the inflation target of 2 percent to 4 percent for 2025 to 2026 and set the same target for 2027 to 2028. The BSP aims to strengthen its forward-looking monetary policy approach by announcing a medium-term inflation target, helping to anchor inflation expectations. It believes this target remains appropriate for price stability, considering the current Philippine economic structure and macroeconomic outlook. The BSP notes that despite upside risks, the inflation outlook remains manageable due to prospects for aggregate demand and supply-side conditions. Inflation expectations remain anchored to the current target, supported by easing monetary conditions, improving labor market dynamics, and ongoing implementation of investment-enhancing structural reforms
INFLATION BSP PHILIPPINES MONETARY POLICY ECONOMY
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