Bangko Sentral ng Pilipinas officials consider inflation as the biggest challenge the country is facing, particularly its impact on the economy.
“Our challenge now is inflation. Fortunately, the BSP’s inflation-targeting framework has served us well in the face of unusual supply shocks,” BSP Governor Eli Remolona Jr. said during the Post-SONA briefing in Pasay City on Tuesday.
“We continue to focus on our mandate of price stability and have dedicated our resources and attention in pursuit of this goal,” he said.
Data showed that from a peak of 8.7 percent in January 2023, inflation decelerated in the succeeding five months. The Philippine Statistics Authority said inflation in June settled at 5.4 percent, the slowest in 13 months.
“Our models tell us that inflation will be within the target range of 2 to 4 percent by the fourth quarter of 2023. This is the range that we think is ideal for an economy like the Philippines when it is growing at full capacity,” Remolona said.
BSP Deputy Governor Francisco Dakila Jr. said based on their latest baseline forecast, inflation would continue to decelerate in the coming months.
