Inflation may accelerate to as high as 8.1% in October — BSP

MANILA, Philippines — Inflation could pick up to as high as 8.1% in October due to higher fuel and electricity prices, as well as transport fares, according to the Bangko Sentral ng Pilipinas’ (BSP) forecast for the month.

On Friday, October 30, the central bank said that inflation is projected to settle within the 7.1% to 8.1% range, with lower food prices brought about by “favorable supply conditions” partially offsetting upward pressure from energy prices.

However, even an outcome on the lower end would keep inflation well above the BSP’s 3% target.

The upper limit is almost a full percentage point higher than the 7.2% rate logged in September, which itself was the highest figure recorded in three years.

The BSP raised its benchmark interest rate by 50 basis points in late October, saying the hike to 5.5% would bring the country back to its target by 2028.

The central bank, according to Governor Eli Remolona Jr., remains open to further hikes, including increments bigger than 50 basis points, if additional inflation shocks emerge.