BSP sees November inflation between 2.2%-3%

The Bangko Sentral ng Pilipinas (BSP) forecasts inflation for November to be between 2.2% and 3%.

Key factors contributing to this expected increase include rising prices for vegetables, fish, and meat due to adverse weather, along with higher electricity and petroleum rates, and a weaker peso.

However, the BSP anticipates that these upward pressures will be partially counteracted by a decrease in rice prices.

Inflation had previously accelerated to 2.3% in October, influenced by rising rice prices despite tariff reductions.

The Philippine Statistics Authority is scheduled to release the official November inflation data on December 5.

Despite previous inflation cooling, allowing for interest rate cuts, analysts suggest that recent storms and peso depreciation could lead to higher-than-expected inflation, potentially deterring further rate cuts by the BSP.