BSP projects December inflation between 1.2% and 2.0%

The Bangko Sentral ng Pilipinas (BSP) forecasts inflation in December to be between 1.2% and 2.0%.

This projected range suggests a slowdown compared to the 2.9% inflation recorded in December of the previous year.

Potential upward price pressures stem from increased costs of major food items due to adverse weather and high holiday demand, alongside rising prices for LPG and gasoline.

However, these upward pressures are expected to be partially counteracted by lower electricity rates in Meralco-serviced areas and a decrease in diesel prices.

If inflation comes in below two percent in December, it will mark the 10th straight month that the consumer price index is below the BSP's target range.

The BSP stated it will remain vigilant and continue to monitor domestic and international developments affecting the outlook for inflation and growth.