BSP sees January inflation at 2.5-3.3%

Inflation rate is likely to settle between 2.5% and 3.3% in the first month of 2020, the Bangko Sentral ng Pilipinas (BSP) said Friday.

The BSP’s Department of Economic Research said the upward inflationary pressures for January were higher prices of liquefied petroleum gas and selected food items.

The central bank also noted the adjustments in the excise taxes on tobacco products, following the signing of a measure imposing higher levies on heated tobacco and alcoholic beverages.

“Meanwhile, inflation could be tempered by the lower electricity rates in Meralco serviced-areas and rollbacks in fuel prices during the month,” the BSP said.

Nevertheless, the central bank said will continue to monitor evolving price trends to ensure that the monetary policy stance remains consistent with the mandate of maintaining price stability conducive to economic growth.

The BSP’s inflation forecast came days ahead of the Philippine Statistics Authority’s announcement of the consumer price index on February 5. — RSJ, GMA News