Inflation may still hit 7% in October

A possibility of inflation reaching 7 percent is still on the table, as food and oil prices remain elevated during the month.

In a statement, the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research (DER) said it projects

October 2018 inflation to settle anywhere within the 6.2 to 7 percent range.

Inflation in September hit 6.7 percent, rising from the 6.4 percent in the previous month and the 3 percent in the previous year.

Despite the elevated forecast, the BSP still believes inflation is on its way downward in the fourth quarter of the year.

“The BSP Department of Economic Research projects October 2018 inflation to settle within the 6.2 to 7.0 percent range.

This corresponds to a month-on-month inflation forecast range of -0.2 to 0.6 percent, which is in line with the BSP’s assessment

that inflation is likely to have peaked in the third quarter of 2018 in the absence of further price shocks,” the BSP said.

BSP expansion

“Upward value weights from residential oil costs and water rates in Manila Water-and Maynilad-overhauled regions

counterbalanced by the lower costs of rice and other nourishment things and in addition the descending change in Meralco

control rates,” it included. In their September meeting, the BSP said an expansion is currently anticipated that would average

at 5.2 percent, from the 4.9-percent projection in the past gathering on August 9. For 2019, expansion is currently likewise

anticipated that would rupture focus to hit 4.3 percent from the prior conjecture of 3.7 percent.

The BSP pledged to keep observing advancements in expansion for arrangement making contemplations.

“Pushing ahead, the BSP will keep on nearly screen advancing patterns in costs and swelling desires, and will

embrace essential measures toward its pledge to value solidness,” the BSP said.

The BSP will hold its next money related strategy meeting on November 15.