BSP flags risks to stable inflation rate

While consumer price increases moved at a steady pace in October, the Bangko Sentral ng Pilipinas (BSP) said potential tariff hikes on imported rice and a possible jump in power costs could trigger faster price movements in the coming months.

- BY DERCO ROSAL

"Potential electricity rate adjustments and possible increases in tariffs on rice imports could add some upward pressures," the BSP said in a Nov. 5 statement.

This comes as the inflation rate held steady at 1.7 percent last month, matching the pace seen in September, reflecting the pull that housing-related costs exerted on the slowdown in food price increases.

Despite the looming risks, the BSP has forecast full-year average inflation to clock in below two percent-the lower end of the government's target range, which has four percent as the upper end.

"Inflation is projected to average below the low end of the target range in 2025, primarily due to the easing of rice prices in previous months," the central bank said. October headline inflation was also within the BSP's month-ahead forecast range of 1.4 to 2.2 percent.