BSP Projects December Inflation to Accelerate to 3.1%

The Bangko Sentral ng Pilipinas (BSP) expects the country’s inflation rate to rise for the third consecutive month in December, driven by supply constraints from recent storms and higher electricity and fuel costs.

Inflation Forecast

• December Inflation Range: 2.3% to 3.1%
• November Inflation Rate: 2.5%
• 2024 Full-Year Inflation Estimate: 3.2%

The projected full-year inflation figure remains within the BSP’s target range of 2% to 4% for 2024.

Contributing Factors

The central bank highlighted factors contributing to upward price pressures, including:

• Supply Disruptions: Recent weather disturbances impacting major food items.
• Higher Energy Costs: Rising electricity rates and petroleum prices.

However, these are partially offset by:

• Lower Agricultural Prices: Declines in the cost of key commodities such as rice.

Monitoring Inflation Trends

The BSP reiterated its commitment to closely monitoring factors influencing inflation and growth. The central bank maintains a data-driven approach to monetary policy, adjusting as needed to balance economic stability.

The Philippine Statistics Authority is set to release the official December inflation figures on January 7, 2025.