The Bangko Sentral ng Pilipinas (BSP) said Wednesday it expects January 2024 inflation to settle within a range of 2.8 percent to 3.6 percent.
The forecast is within the bank’s 2024 target band of 2 percent to 4 percent. The Philippine Statistics Authority will release the official inflation report next week.
“Higher prices of some agricultural items, like rice, meat, fruits and fish, along with increased petroleum prices, electricity and water rates, annual adjustment in sin taxes and the depreciation of the peso are the primary sources of upward price pressures for the month,” the BSP said.
Lower prices of vegetables and sugar could contribute to downward price pressures, it said.
“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making,” the BSP said.
The Philippine Statistics Authority earlier reported that inflation settled at 3.9 percent in December, lower than the 4.1 percent in November and 8.1 percent in December in 2022. It was also the lowest since it settled at 3.0 percent in February 2022.
Inflation averaged 6 percent in 2023, faster than 5.8 percent in 2022. It was also higher than the target range of 2 percent and 4 percent for the year, but within the Development Budget Coordination Committee (DBCC) assumption of 5 percent to 6 percent.