Inflation in the Philippines eased to 2.8 percent in January, comfortably falling within the government’s target range of 2 to 4 percent, according to the Philippine Statistics Authority.
This marks a decline from December’s 3.9 percent figure and aligns with the lower end of the Bangko Sentral ng Pilipinas’ forecast range of 2.8 to 3.6 percent for January.
The January inflation rate is the slowest since October 2020, attributed partly to “base effects,” where the current month’s inflation is compared to a higher rate from the previous year.
Despite milder price pressures, particularly on essential food items, the comparison with the high inflation rate of 8.7 percent a year ago magnified the slowdown.
The BSP may find less pressure to adjust interest rates due to the within-target inflation rate and the economy’s surpassing growth forecasts in 2023.
While inflation has eased back into the BSP’s target range since December, the BSP remains cautious, preferring to maintain tight monetary policy settings until a sustained downtrend in inflation is observed.
Sources: PhilNews24 | February 7, 2024
