BSP sees 1.8-2.7 percent inflation in January on dropping oil prices

Consumer prices at the start of 2015 are seen to ease further amid the continued slide in oil prices globally, the Bangko Sentral ng Pilipinas chief said Wednesday.

 

Inflation in January is expected within the range of 1.8 to 2.7 percent, Bangko Sentral Governor Amando Tetangco Jr. said in a text message to reporters.

 

This compares with the 2.7 percent inflation in December, the slowest in 15 months.

 

"BSP's assessment shows continued easing of price pressures... Latest runs show inflation over the policy horizon will be well within the target range," he said.

 

The Development Budget Coordination Committee (DBCC), an inter-agency economic planning body, has set a 2 to 4 percent inflation target for this year.

 

Oil prices have slumped nearly 60 percent since peaking in June, driven lower by ample supplies from the US shale oil boom and the Organization of the Petroleum Exporting Countries' decision not to cut output, Reuters reported.

 

"BSP will watch economic and financial developments including the balance of global liquidity, its impact on global inflation and growth dynamics, and how these would translate to investment sentiment, financial market moves and market inflation expectations," Tetangco said. —KG, GMA News