February inflation seen settling within 2.4-3.2%
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Fri, 28 Feb 2020 17:05:22 +0000
THE country’s inflation likely eased to as low as 2.4 percent or accelerated to as high as 3.2 percent this month, the Bangko Sentral ng Pilipinas (BSP) said on Friday.
The range projected by the central bank’s Department of Economic Research compares with January’s 2.9 percent, but lower than the 3.8 percent posted in February last year.
The Philippine Statistics Authority (PSA) will release official February inflation data on March 5.
“Lower prices of petroleum products, electricity and rice, as well as other food products, are expected to temper price pressures in February,” the BSP said in a statement.
The Manila Electric Co.’s per kilowatt-hour (kWh) rate for households consuming 200 kWh monthly decreased by 59 centavos this month.
Latest PSA data show that the average retail price of regular milled rice in the second week of February retained its previous week’s level of P36.33 per kilogram.
“Looking ahead, the BSP will remain watchful of economic and financial developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” the Bangko Sentral said.
The central bank’s policy-making Monetary Board is set to revisit its monetary policy stance at its second rate-setting meeting on March 19.
On February 6, monetary authorities reduced the BSP’s overnight borrowing, lending and deposit rates by 25 basis points to 3.75 percent, 4.25 percent and 3.25 percent, respectively.
Bangko Sentral Governor Benjamin Diokno said “the Monetary Board concluded that the manageable inflation environment allowed room for a preemptive reduction in the policy rate to support market confidence,” given domestic and external considerations.
The central bank’s latest baseline forecasts indicate a broadly steady path of inflation for 2020 and 2021, with average inflation remaining within the 2 to 4-percent target range, he said.
The Monetary Board also raised their 2020 inflation forecast to 3.0 percent from 2.9 percent and kept their 2021 projection at 2.9 percent.