The rate of growth in commodity prices nationwide is expected to be within the 3.3 percent to 4.1 percent range in November, according to the Bangko Sentral ng Pilipinas (BSP).
BSP Governor Benjamin Diokno said in a message to reporters higher electricity and liquefied petroleum gas prices along with the uptick in the prices of meat, fish, fruits and vegetables are the primary sources of inflationary pressures during the month.
“These could be offset in part by rollbacks in the domestic petroleum prices and the appreciation of the peso,” he said.
The latest forecast means a further slowdown from the 4.6 percent headline inflation recorded in October, which put the average for the January-October period to 4.5 percent.
In an economic briefing for foreign chambers of commerce held last week, Diokno said that for the whole year inflation could settle above the government’s target range of 2 percent to 4 percent this year.
“But this [inflation] is expected to revert to our target range in 2022 and 2023,” he said. “We will remain vigilant of second round effects and any possible unhinging of inflation expectations.”
Earlier this month, the BSP said inflation results as of October were consistent with the agency’s forecasts showing that inflation would remain above the target range up to October 2021.
The consumer price index was then expected to ease to within the target range this month, and to decline further and approach 3 percent over the next two years.