Low inflation seen lingering in Dec.

Inflation is likely to fall below the government's target band for the 10th straight month in December, even as the Bangko Sentral ng Pilipinas (BSP) sees the Christmas holiday season lifting prices.

- BY BEN ARNOLD DE VERA

In a statement on Monday, Dec. 29, the BSP forecast this month's headline inflation to settle within the range of 1.2 to two percent, with the upper end of the projection touching the lower bound of the twoto four-percent goal deemed as manageable annual price increases conducive to economic growth.

"Upward price pressures may come from increased prices of major food items due to the lingering effects of adverse weather and strong holiday demand, as well as higher liquefied petroleum gas (LPG) and gasoline prices," the BSP said.

"These pressures could be partly offset by lower electricity prices in Manila Electric Co. (Meralco)-serviced areas and declining kerosene and diesel prices," it added.