HEADLINE INFLATION may have settled within the 7.4% to 8.2% range in November due to higher electricity rates and soaring prices of agricultural commodities, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday evening.
If realized, inflation would exceed the BSP’s 2-4% target for the eighth consecutive month. Headline inflation stood at 7.7% in October.
“The highest year-on-year headline inflation is either this coming report or the next one,” Mr. Medalla said.“Upward price pressures for are expected to emanate from higher electricity rates, uptick in the prices of agricultural commodities due to severe tropical storm Paeng, and higher LPG prices,” the BSP said in a statement.
“Meanwhile, the reduction in petroleum and pork prices as well as the peso appreciation could contribute to easing price pressures for the month,” the BSP said. “ year-to-date peso depreciation was about 15%. Now it’s below 10% and it’s not just the Philippines. It’s a global trend now that people are saying that maybe the Fed is already close to eventually pausing and will no longer do jumbos of 75 ,” Mr. Medalla said.ation and stabilize the peso, bringing the key policy rate to 5%.
“What they’re saying is that US rates will rise but the rate of increase will decrease. So, in that particular case, then maybe we have room to either respond fully or partially. Depending on the data,” he said.
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