December inflation to hit between 2.6-3.5% — Bangko Sentral

The rise in consumer prices this month will likely settle within the 2.6 percent to 3.5 percent band of inflation, Bangko Sentral ng Pilipinas Governor Amando Tetangco said on Wednesday.

 

In a briefing, Tetangco told reporters: “We forecast that inflation in December will fall within 2.6 to 3.5 percent taking into account the impact of Typhoon Pablo on food prices.”

 

The benign inflation forecast was chiefly due to costs of fuel in the face of a stronger peso, as well as lower electricity rates for the month. “Slight decline in fuel prices, appreciation of the peso against the dollar, and lower electricity rates,” Tetangco said.

 

“This will put the full year inflation to settle at the lower end of the BSP's 3 to 5 percent target,” Tetangco said.  

 

“Moving forward, the BSP will keep close monitoring of price development in order to ensure price stability and sustained economic growth.”

 

Last week, the Bangko Sentral lowered its inflation forecast to 3.2 percent in 2012 after the rise in consumer prices slowed to 2.8 percent in November. — VS, GMA News