Much like hotcakes, ham at this specialty store in Manila sell like crazy as the festivities across the country move from Christmas cheers to New Year revelry. AL Padilla @tribunephl_al

The benign inflation environment throughout 2019 is seen to persist in December when historically it trends up, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

“The BSP Department of Economic Research (BSP-DER) projects December 2019 inflation to settle within the 1.8 to 2.6 percent range,” the BSP said.

The outlook builds on inflation already averaging 1.3 percent in November. However, the projected range is significantly higher than the 0.9 to 1.7 percent band forecast a month ago.

According to the BSP, upward pressure from electricity rates, gasoline prices and the impact of weather-related disturbances on selected food items may be offset by the sustained reduction in domestic rice prices.

“Looking ahead, the BSP will remain watchful of evolving price trends and ensure that the monetary policy stance remains appropriate to maintain price stability that is conducive to a balanced and sustainable economic growth,” the BSP said.

The central bank recalibrated its 2019 inflation outlook from 2.5 percent to just 2.4 percent, or well within the government’s 2 to 4 percent target for 2019.

Previously, BSP Deputy Governor Francisco Dakila Jr. said the low inflation environment should persist even as consumption activities perk up on account of greater spending during the long Yuletide holidays.

Security Bank chief economist Robert Dan Roces forecast the December inflation at 2 percent as the rate of change in prices move within a narrow 1.7 to 2.2 percent range.

“Month-on-month price growth is estimated to be consistent at 0.2 percent, or a steady price growth trajectory amid higher demand for select commodities during the holiday season, plus electricity and fuel price changes,” Roces said.