BSP forecast places Nov. inflation at 1.6-2.4%

Inflation likely accelerated between 1.6 and 2.4 percent in November, driven by higher prices of cooking gas as well as the depreciation of the peso, the central bank said Monday.

“The BSP forecast suggests that November inflation could settle within the 1.6-2.4 percent range,” Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said in a text message to reporters.

The upward risks include higher prices of liquefied petroleum gas (LPG) and a weaker currency.

The peso hit a 10-year intraday low of P50:$1 last week, the lowest since it traded at P50.12 to a dollar on November 11, 2006.

But the downside risks include lower petroleum prices and the “slight decline” in rice prices during the month.

“Looking ahead, the BSP will continue to monitor evolving price trends and output conditions to ensure price stability conducive to a balanced and sustainable economic growth,” Tetangco said. — VDS, GMA News