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Inflation seen meeting target

Higher electricity and LPG prices along with the uptick in the prices of meat, fish, fruits and vegetables are the primary sources of inflationary pressures

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Monetary authorities are projecting a much tamer inflation for November, expecting data for such to settle within the government’s 2 to 4 percent target.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said inflation in November could hit 3.7 percent, the midpoint of their 3.3 to 4.1 percent range forecast.

“Higher electricity and LPG prices along with the uptick in the prices of meat, fish, fruits and vegetables are the primary sources of inflationary pressures during the month,” Diokno said.

“These could be offset in part by rollbacks in domestic petroleum prices and the appreciation of the peso,” he added.

Still, the latest range offered by the BSP was notably lower than the previous 4.5 to 5.3 percent view for the month of October 2021.

BSP keeps watch
Further, the BSP chief reiterated the central bank’s commitment in keeping market prices in check and supporting the economy for a faster recovery.

“Moving forward, the BSP will continue to monitor emerging price developments to help achieve its primary mandate of price stability that is conducive to balanced and sustainable growth of the economy,” he concluded.

Diokno earlier said inflation remains transitory despite their higher-than-target outlook for the year, noting that only a few items in the consumer basket recorded higher inflation rates than the government’s target.

BSP Deputy Governor Francisco Dakila earlier announced a revision in their assumption for inflation for 2021, adjusting the previous 4.4 percent to just 4.3 percent.

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