BSP sees October inflation to settle within 1.9 - 2.2% range

Inflation or the rate of increase in the prices of goods and services is expected to remain in October, the Bangko Sentral ng Pilipinas said Friday.

“The BSP Department of Economic Research projects October 2020 inflation to settle within the 1.9 - 2.7% range,” BSP Governor Benjamin Diokno told reporters in a Viber message.

Diokno added that the point inflation project or the likely figure for October is 2.3%.

This is the same as the September’s rate, the second straight month that the rise in consumer prices posted a slowdown. 

On the other hand, the Philippine Statistics Authority (PSA) is scheduled to announce the October inflation figures on November 5.

But Diokno said, “Higher electricity rates in Meralco-serviced areas, increases in LPG and kerosene prices, and the impact of weather disturbances on selected food items contributed to upward price pressures for the month.” 

The Manila Electric Co. announced a P0.1212 per kilowatt-hour hike in October power rate bringing it to P8.55/kWh from P8.4288/kWh in September. 

Likewise, oil companies increased the price of liquefied petroleum gas, effective October 1,  P1.00 per kilo or about P11.00 per 11-kilo cylinder. Auto LPG also increased by P0.56 per liter.

“These could be partly offset by lower prices for gasoline, diesel, and rice as well as downward adjustments in the water rates of Manila Water- and Maynilad-serviced areas,” the BSP chief said.

Oil companies implemented price adjustments, effective  October 27, with diesel decreasing by P0.25 per liter and kerosene by P0.15 per liter, while no price movement has been effected on the price of gasoline.

Meanwhile, Manila Water and Maynilad slash rates due to foreign currency differential adjustment (FCDA), effective October 1. 

As of the first week of October, data from the PSA show the average wholesale price of well milled rice dipped by 0.5% to P37.09 per kilo from last week of September’s P38.07 per kilo.

The average wholesale retail price or regular milled rice also plunged to P33.86 per kilo from P34.25 per kilo.

Nevertheless, Diokno said the central bank will remain watchful of economic and financial developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved. —LBG, GMA News