The Bangko Sentral ng Pilipinas expects inflation rate to stay benign until 2022, as demand-induced price pressures are likely to remain manageable over the target horizon.
The interagency Development Budget Coordination Committe, in its meeting on Dec. 11, decided to keep the current inflation target at 2 percent to 4 percent for 2020 to 2022. The government’s inflation target is defined in terms of the average year-on-year change in the consumer price index over the calendar year.
“The announcement of the inflation target is in line with the BSP’s commitment to transparency and accountability as well as the forward-looking approach in the conduct of monetary policy,” the BSP said in a statement Wednesday.
“The 3.0 percent ± 1.0 percentage point inflation target for 2020 to 2022 continues to be an appropriate quantitative representation of the BSP’s medium-term price stability goal that is conducive to the balanced and sustainable growth of the Philippine economy,” it said.
