Philippines’ October Inflation Projected Between 5.1% and 5.9%

MANILA (Reuters) – The central bank of the Philippines indicated on Tuesday that annual inflation is expected to have eased in October, projecting a rate between 5.1% and 5.9%.

This forecast is lower than the 6.1% recorded in September and is attributed to declines in the prices of rice, meat, vegetables, and a decrease in petroleum product costs.

In its statement, the central bank affirmed its commitment to closely monitor factors influencing inflation and growth, adhering to a data-driven approach in its monetary policy decisions.

Recently, the Bangko Sentral ng Pilipinas raised its benchmark policy rate by 25 basis points to 6.5%, marking the highest rate in 16 years.

A decrease in inflation could reduce the central bank’s urge to implement further rate hikes. However, officials have noted their readiness to tighten policies should inflation exceed expectations.

When the central bank convenes on November 16 to evaluate its policy, it will have the latest data on October’s inflation and third-quarter growth figures, which are set to be released on November 7 and 9, respectively.