BSP sees inflation at 1.4-2.2% in October

HEADLINE INFLATION may have eased year on year in October despite elevated prices of selected commodities and the peso’s recent, weak performance, the Bangko Sentral ng Pilipinas (BSP) said.

- Katherine K. Chan

Based on the central bank’s month-ahead forecast, inflation likely settled between 1.4% and 2.2% in October, slower than the 2.3% print in the same month a year ago.

At the upper end of the forecast, inflation likely accelerated from 1.7% in September and would be the fastest clip in nine months or since the 2.9% clip in January.

At the bottom end of the forecast, inflation could have hit a three-month low or since 0.9% in July.

“Upward price pressures for the month may stem from higher prices of rice, fish, vegetables, and electricity, as well as the depreciation of the peso,” the BSP said ina statement on Thursday.

The peso breached the P59 level on Tuesday, slipping by 23 centavos to P59.13 per US dollar from its P58.90 finish on Monday. This was a new all-time low for the peso, exceeding the previous record of P59 on Dec. 19, 2024.

Data from the Department of Agriculture (DA) showed the average price of local regular milled rice slipped by 1.3% to P37.30 per kilo in the Oct. 20-25 period from P37.79 per kilo a month ago. Well-milled rice also declined by 0.9% month on month to P42.72 per kilo from P43.10, while special rice fell by 0.3% to P56.92 per kilo from P57.10.