Inflation rate getting low in the Philippines has been reported to continue this month. As reported in September, the decline in the inflation rate has caused Bangko Sentral ng Pilipinas (the central bank) to cut rates once more.
According to Business World, the Department of Finance has released an email to journalists two days after reports of last months stats being the weakest in more than three years, as compared to 2018’s.
The Philippine Statistics Authority had stated that lower food and electricity prices and “base effects” are prevalent as to last year’s 6.7% also recorded in September and October.
“For the rest of the year, assuming month-on-month price growth of at most 0.2% as in September, monthly inflation will be likely still below one percent in October before making upward corrections in the final two months,” the Department of Finance said via an economic bulletin by the department’s undersecretary, Gil S. Beltran.
The decline in month-to-month inflation has been observed from July which had 0.25% to August and September with 0.17% respectively.
“Inflation will likely revert target once base effects fade. Price pressures appear to be benign as food prices are expected to be more stable given new legislation and government’s openness to importing food stuffs,” stated by ING Bank NV Manila economist, Nicholas Antonio T. Mapa.
“With this environment, the BSP is afforded scope to ease policy rates further should other data points warrant it, but for most part, the price objective remains well in hand,” Mapa added.
The Bangko Sentral ng Pilipinas board will have their next monetary policy gatheringon November 14 and December 12 of this year.