BSP: Lower rice tariffs, negative base effects to support disinflation

The reduction in rice tariffs and negative base effects are expected to help keep inflation within the Bangko Sentral ng Pilipinas (BSP)'s target range of two to four percent this year, as inflation remains below three percent in January.

-  Keisha Ta-asan

The Philippine Statistics Authority yesterday reported that inflation remained unchanged at 2.9 percent in January from a month ago. This is a tad higher than the 2.8 percent clip recorded a year prior.

"The latest inflation outturn is consistent with the BSP's assessment that inflation will remain anchored to the target range over the policy horizon. The rice tariff reduction and negative base effects are expected to support disinflation," the central bank said.

However, the balance of risks to the inflation outlook continues to lean toward the upside due to possible adjustments in transport fares and electricity rates this year.