{"id":238776,"date":"2019-11-30T01:25:04","date_gmt":"2019-11-30T06:25:04","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=238776"},"modified":"2019-11-30T01:25:04","modified_gmt":"2019-11-30T06:25:04","slug":"bsp-forecasts-november-19-inflation-between-0-9-1-7","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/11\/30\/bsp-forecasts-november-19-inflation-between-0-9-1-7\/","title":{"rendered":"BSP forecasts November \u201919 inflation between 0.9-1.7%"},"content":{"rendered":"
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In a statement Friday, the Bangko Sentral ng Pilipinas (BSP) said its Department of Economic Research (DER) forecasts the November 2019 inflation to be driven by higher electricity rates, prices of gasoline, liquefied petroleum gas (LPG), and select food items. (File Photo<\/a>: Bangko Sentral ng Pilipinas\/Facebook<\/a>)<\/figcaption><\/figure>\n
MANILA<\/strong>\u00a0— Philippine monetary officials\u2019 projection that domestic inflation might have bottomed out last October can be seen in their forecast for November 2019, with the range set between 0.9 to 1.7 percent.<\/div>\n
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This range is higher than the 0.8-percent inflation rate last October but way lower than the 6 percent in November last year.<\/div>\n
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In a statement Friday, the Bangko Sentral ng Pilipinas (BSP) said its Department of Economic Research (DER) forecasts the November 2019 inflation to be driven by higher electricity rates, prices of gasoline, liquefied petroleum gas (LPG), and select food items.<\/div>\n
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\u201cMeanwhile, inflation could be tempered by lower domestic rice prices and the appreciation of the peso,\u201d it said.<\/div>\n
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\u201cLooking ahead, the BSP will remain watchful of evolving inflationary conditions to ensure that the monetary policy stance remains consistent with the BSP\u2019s price stability mandate,\u201d it added.<\/div>\n
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After peaking at 6.7 percent in September and October 2018, the domestic inflation rate has generally declined to 0.8 percent last October.<\/div>\n
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The average inflation rate in the first 10 months this year stood at 2.6 percent, at the lower half of the government\u2019s 2 to 4-percent target range until 2021.<\/div>\n
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During the rate-setting meeting of the BSP\u2019s policy-making Monetary Board (MB) last November 14, the Board slashed its 2019 average inflation forecast to 2.4 percent from 2.5 percent previously after noting that base effect of year-ago\u2019s elevated inflation rate starts to disappear.<\/div>\n
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The 2020 and 2021 average inflation forecast was kept at 2.9 percent.<\/div>\n
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UnionBank chief economist Ruben Carlo Asuncion targets the November 2019 inflation rate to climb to 1.3 percent as \u201clast year\u2019s base effect starts to dissipate\u201d.<\/div>\n
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Aside from base effects, the economist said upside risk to inflation may come from higher food prices due to weather-related factors and the impact of the African Swine Fever (ASF) on pork products.<\/div>\n
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\u201cThe ASF may have caused prices of alternatives\/substitutes to rise due to higher demand,\u201d he said.<\/div>\n
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Another reason for an uptick in the inflation rate is the higher consumption demand ahead of the Christmas season, he said.<\/div>\n
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UnionBank forecasts inflation to average at 2.4 percent this year.<\/div>\n
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Asuncion also cited that with average inflation this year staying within the government\u2019s target band \u201cthere is ample traction to the BSP Governor\u2019s recent mention of a potential rate cut in the Monetary Board\u2019s December meeting.\u201d<\/div>\n
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BSP Governor Benjamin Diokno on Monday raised the possibility of another reduction in the BSP\u2019s key policy rates after the 75 basis points cut so far this year as inflation continues to decelerate.<\/div>\n
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The cuts were implemented this year after the key rates were increased by a total of 175 basis points last year to help reign in inflation expectations as a result of the increase in domestic rice prices.<\/div>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— Philippine monetary officials\u2019 projection that domestic inflation might have bottomed out last October can be seen in their forecast …<\/p>\n","protected":false},"author":44,"featured_media":151973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-238776","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/238776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=238776"}],"version-history":[{"count":2,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/238776\/revisions"}],"predecessor-version":[{"id":238778,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/238776\/revisions\/238778"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/151973"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=238776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=238776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=238776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}