BSP forecasts inflation at 2%-2.8% in Sept, down from Aug's 3.3%

Inflation is expected to slow below 3% in September, with the Bangko Sentral ng Pilipinas (BSP) forecasting a range of 2% to 2.8%, marking a significant decline from August's 3.3% and last year’s 6.1%

The BSP attributes this easing trend primarily to lower prices for food commodities such as rice, meat, vegetables, and reduced domestic oil prices, alongside the appreciation of the peso.

Despite higher prices for fish, fruits, and electricity rates in September, negative base effects and price declines are expected to contribute significantly to the Consumer Price Index (CPI) decrease.

The BSP could deliver further interest rate cuts if inflation remains within its target range, with analysts suggesting 25-basis-point reductions at upcoming meetings in October and December.

President Ferdinand R. Marcos Jr.'s tariff cut on rice imports to 15% from 35%, effective until 2028, is expected to continue driving down prices and easing inflation throughout the year.