BSP Anticipates Inflation Alignment with Target Range in December Amid Economic Fluctuations

The Bangko Sentral ng Pilipinas (BSP) has indicated that there’s a possibility for inflation to align with the government’s target range of 2 to 4 percent in December​​. This projection comes after a period of heightened inflation rates. Despite efforts to manage the economy, the BSP’s latest baseline forecasts showed that average inflation was expected to exceed the upper limit of this range for both 2022 and 2023, with projected rates of 5.8 percent and 4.5 percent respectively​​. Notably, in November, inflation began to show signs of slowing down, reaching 4.1 percent and approaching the higher end of the Monetary Board’s target range for 2023​​.

For December, the BSP anticipated an inflation rate between 3.5 and 4.3 percent. This estimate took into account various factors, including unfavorable weather conditions domestically, which were expected to drive prices up, counterbalanced by other elements that might temper this increase​​.

In summary, while the BSP aimed to keep inflation within the 2 to 4 percent target range, fluctuating economic conditions and external factors presented ongoing challenges in achieving this goal consistently.