BSP sees January inflation at 2.5-3.3 percent

The Bangko Sentral ng Pilipinas (BSP) projects inflation in January to settle within 2.5 to 3.3 percent.

Upward price pressures in January stem from the rise in petroleum prices, increased prices of major food items owing to the lingering effects of recent weather disturbances, as well as the annual adjustments in water rates and sin taxes.

Several oil companies raised oil prices by P2.00 to P3.00 per liter on January 21, stemming from lower global oil supply due to US and UK production restraints on Russian oil.

In December, inflation stood at 2.9 percent as prices of food, housing, fuel, and electricity rose.

National statistics show food and non-alcoholic drinks contributed 1.7 percentage points to the 3.2 percent average overall inflation last year, after six typhoons hit the country between October and November.

Typhoon Kristine alone left over P11 billion in agricultural and infrastructural damage, pushing up prices of goods due to slowed farm production and delivery.

The government aims to maintain inflation within the 2 to 4 percent target range for 2025.

The BSP anticipates further interest rate cuts this year, after having reduced rates by 75 basis points in the previous year.