Philippines October inflation likely within 5.1%-5.9%: central bank

PHILIPPINE annual inflation likely eased in October, the central bank said on Tuesday (Oct 31), predicting the rate to fall between 5.1 per cent and 5.9 per cent.

The central bank’s projection for October inflation was below the 6.1 per cent rate in September, and reflected lower prices of rice, meat, and vegetables and a reduction in the cost of petroleum products.

In a statement, the central bank said “it will continue to closely monitor developments affecting the outlook for inflation and growth in line with its data dependant approach to monetary policy formulation.”

The Bangko Sentral ng Pilipinas raised its benchmark policy rate by 25 basis points in an off-cycle move to 6.5 per cent on Thursday, bringing the rate to its highest in 16 years.

Slower inflation could ease the pressure on the central bank to hike more. It has said it was prepared to tighten policy further if the inflation was worse than thought.

By the time the central bank meets on Nov 16 to review policy, it would already have the data for October inflation and third quarter growth, which are due to be released on Nov 7 and 9, respectively. REUTERS