Inflation finally eased to 1.3 percent in January as it rose sharply for two straight months after bottoming out in September and October last year, the Philippine Statistics Authority (PSA) reported.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said inflation fell within the central bank?s forecast range of 0.8 percent to 1.6 percent for last month due to cheaper utility rates and the roll back of the minimum fare for jeepneys,
?The slower inflation outturn was primarily due to lower utility rates and transport prices, among others. Our view remains to be that monthly inflation will slowly rise to within the target range for 2016 and 2017,? Tetangco said.
The central bank has pegged the inflation target at two percent to four percent between 2016 and 2018.
Inflation kicked up for two straight months to 1.1 percent in November and to 1.5 percent in December after hitting the bottom at 0.4 percent in September and October.
The BSP chief pointed out pressure is tilted on the upside due to severe and prolonged El Ni?o weather disturbance as well as the potential adjustments in electricity rates given pending petitions.
The BSP?s Monetary Board is set to hold its first policy-setting meeting this year on Feb. 11. It has kept interest rates unchanged for 10 straight policy-setting meetings since October 2014 amid the sustained economic growth and benign inflation.
?We will continue to monitor other developments, including hints of even slower global growth and more volatility in financial and commodity markets, to see if the balance of risks is tilting such that there is need for adjustment in policy stance,? Tetangco said.
Socioeconomic planning secretary Emmanuel Esguerra said the slower price adjustments in both food and non-food items pulled down inflation last month.
?Good weather conditions at the onset of 2016 allowed prices of these food items to stabilize. This was an improvement from the previous month when
Typhoon Nona pushed up prices due to hampered production, transport, and delivery of agricultural products in the affected areas,? he added.
