BSP projects 2.6% inflation in February

The Bangko Sentral ng Pilipinas (BSP) projects February inflation to settle at 2.6 percent, a decrease from January's 2.9 percent and lower than the 3.8 percent recorded in the same period last year.

Lower prices of petroleum products, electricity, and rice, along with other food items, are cited as the primary reasons for the subdued inflation rate.

While the BSP's forecast range for February inflation was 2.4 percent to 3.2 percent with a central forecast of 2.8 percent, the actual figure was 2.6 percent.

BSP Governor Benjamin Diokno stated that these developments will be considered in the Monetary Board's monetary policy meeting on March 19.

The BSP maintains that the latest inflation turnout is consistent with its assessment that inflation will approach the midpoint of the target range in 2020 and 2021.

Risks to the inflation outlook remain weighted to the upside for this year, influenced by adjustments in utility rates, potential transport fare hikes, and the impact of African swine fever on meat prices.

The ongoing spread of COVID-19 could adversely affect domestic economic activity and financial market sentiment.

The BSP will ensure its monetary stance supports price stability for balanced and sustainable economic growth.