BSP projects November inflation between 1.1 to 1.9 percent

The Bangko Sentral ng Pilipinas (BSP) forecasts November inflation to be between 1.1 to 1.9 percent, falling below the economic managers' 2 to 4 percent target.

Analysts polled by BusinessWorld anticipate November inflation to be 1.6 percent, aligning with the BSP's projected range.

This projected inflation rate would be a decrease from October's 1.7 percent and significantly lower than the 2.5 percent recorded a year ago.

If realized, this would be the slowest inflation in three months and the ninth consecutive month inflation has remained below the BSP's target.

Easing food price pressures, particularly for rice and vegetables due to improved supply during the harvest season, are expected to be the primary drivers for the slowdown.

However, higher utility costs such as electricity and oil prices, along with a depreciating peso, remain potential upward pressures.

The average inflation rate from January to October was 1.7 percent, and a 1.6 percent November inflation would maintain this yearly average.

The BSP has previously cut interest rates multiple times this year due to benign inflation and anticipates another cut in December, following a slowdown in economic growth.