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The country’s headline inflation could have declined to 2.4 percent or accelerated to 3.2 percent this month from 2.5 percent in October due to rising oil and food prices, lower energy rates and a strongest weight, said on Friday the Bangko Sentral ng Pilipinas (BSP).
“Higher domestic oil prices, as well as the impact of weather shocks on prices of rice and selected agricultural products, contributed to upward price pressures during the month,” BSP Governor Benjamin told reporters. Diokno, in a Viber message, before the Philippines Statistics. Authority publication of official inflation data for November on December 4.
Local oil companies raised the price of diesel and kerosene by 50 and 30 cents per liter, respectively, on Tuesday, which Diokno said “could be partially offset by the downward adjustment of electricity rates in service areas. Meralco (Manila Electric Co.) and contributed to the appreciation of the peso. “
Meralco reduced its rate per kilowatt-hour (kWh) for households consuming 200 kWh per month by P0.0395 this month.
The local currency is currently trading within the P48: $ 1 level, compared to the closing rate of P50.64: $ 1 at the end of December 2019. On Friday alone, the peso closed at its strongest at over four years at P48.06 per dollar. .
“Going forward, the BSP will remain attentive to economic and financial developments to ensure that its core mandate of price stability is achieved leading to balanced and sustainable economic growth,” Diokno said.
Last week, the Bangko Sentral raised its 2020 inflation forecast from 2.3 percent to 2.4 percent, but lowered the estimate from 2.8 percent to 2.7 percent for 2021 and from 3.0 percent to 2.9 percent for 2022.
According to the central bank chief, consumer price growth is projected to remain within the government’s target range of 2 to 4 percent, as the latest benchmark forecasts continue to indicate a benign inflation environment.
“Average inflation is considered to be within the lower half of the target band for 2020 through 2022, reflecting slower domestic economic activity, lower crude oil prices and the recent appreciation of the peso,” Diokno said.
“The balance of risks to the inflation outlook also remains on the downside, due in large part to potential disruptions to domestic and global economic activity amid the ongoing pandemic,” he added.
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