October inflation projected at 2% to 2.8% — BSP

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has projected October 2024 inflation to range between 2% and 2.8%.

In a statement on Thursday, October 31, the central bank attributed the possible uptick in inflation to rising food and fuel costs, as well as the peso's depreciation.

Higher prices for vegetables, fruits, fish and domestic petroleum were identified as primary contributors to the month’s inflationary trend. However, these increases may be partially offset by decreases in rice and meat prices, along with a reduction in electricity rates.

Following Severe Tropical Storm Trami (formerly Kristine), retail fish prices increased by P160 per kilo on October 28.

Meanwhile, electricity prices decreased by P0.3587 per kWh in October, bringing down the average household rate to P11.4295 per kWh from September’s P11.7882 per kWh.

Oil prices in October saw mixed adjustments, with both rollbacks and increases.

The central bank’s lower-end projection is slightly above the 1.9% inflation rate recorded last month, which fell below September’s projected range of 2% to 2.8%.

On October 16, the BSP’s Monetary Board cut another 25 basis points from the reverse repurchase rate, bringing it to 6%, down from 6.25% in September.