October inflation rates predicted between 2% and 2.8%, driven by food and fuel costs

Analysts predict October's inflation rate to increase between 2% and 2.8%, primarily due to higher food and fuel prices, offset by lower rice and meat costs along with reduced electricity rates.

The Bangko Sentral ng Pilipinas (BSP) projects the trend will likely continue within their target band of 2-4% in coming months barring unforeseen events like La Niña or African Swine Fever outbreaks.

Higher oil and food prices, coupled with a weaker peso, caused inflation to accelerate between 2 percent and 2.8 percent from an over four-year low of 1.9 percent in September, according to the BSP.

The BSP noted that October saw higher prices for vegetables, fruits, fish, and petroleum products, but cheaper rice and meat along with lower electricity rates may have softened this impact.

Rizal Commercial Banking Corp.'s chief economist Michael Ricafort estimates that October inflation settled at 2.4 percent, noting the lowest rate in more than four years of 1.9 percent for September could already be the lowest for 2024 due to higher base effects.