BSP: Inflation likely eased further in January

MANILA, Philippines — Headline inflation likely slowed further for the fourth straight month in January, ranging between 2.8 and 3.6 percent, after easing to a 22-month low of 3.9 percent in December, according to the Bangko Sentral ng Pilipinas.

The  BSP  said higher prices of some agricultural items, like rice, meat, fruits and fish, along with increased petroleum prices, electricity and water rates, annual adjustment in sin taxes, and the depreciation of the peso against the dollar were the primary sources of upward price pressures last month.

Meanwhile, the central bank said the lower prices of vegetables and sugar  may  have contributed to downward price pressures.

“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making,” it said.

The rise in consumer prices quickened to six percent in 2023 from 5.8 percent in 2022, breaching the central bank’s two to four percent target for two straight years amid soaring oil and food prices.

Inflation breached the target for 20 straight months before easing to within the range in December last year.

After discounting the possibility of a rate cut in the first half of the year, BSP Governor Eli Remolona Jr. earlier said there is still room to raise interest rates amid the country’s robust economic growth.

“If the growth is strong, that gives us a bit more room to hike,” Remolona told reporters.