BSP sees no need to tweak policy on 3.5-4.3% inflation in November

Consumer prices in November are expected to decelerate further on stable food prices as well as lower oil prices and electricity rates for the period, neutralizing the need for a policy tweak, the Bangko Sentral ng Pilipinas chief said Wednesday.

 

Inflation in November is expected within the range of 3.5 to 4.3 percent, Bangko Sentral Governor Amando Tetangco Jr. said in a text message to reporters.

 

"Stable food prices, continues decline in international oil prices and lower electricity rates for the month are seen to dampen inflation pressures," he said.

 

On Wednesday, Agence France-Presse reported oil prices extended losses in Asia as speculation swirls that the OPEC oil cartel will maintain output at this week's closely watched meeting despite a global supply glut.  

 

Early in November, Manila Electric Company announced a P0.41 per kilowatt hour (kWh) drop in electricity bills as the Malampaya gas facility started normal operations and less power plant outages occurred.

 

These developments allow for and inflation outlook that is tame, according to the central bank chief.

 

"As I've been saying if among others inflation continues on this decelerating trend and if there continue to be no signs of second round effects, then there is room for BSP to pause and keep its current stance of monetary policy," Tetangco said.

 

Last month, consumer prices slowed down to 4.3 percent, compared to 4.4 percent in September but faster than the 2.9 percent a year earlier, PSA data showed.

 

"That said, BSP will continue to keep a watchful eye on evolving price and demand trends to ensure price stability," Tetangco noted. – VS, GMA News