BSP sees inflation slowing down after surging to 8% in November

The Bangko Sentral ng Pilipinas (BSP) expects inflation to decelerate in the coming months after hitting another high of 8% in November 2022.

The Philippine Statistics Authority reported on Tuesday (December 6) that inflation last month surged faster due to a 10% increase in food prices from a year ago, followed by higher costs of restaurant menu items and tourist accommodation, combined with increases in other products like clothing, footwear, alcohol, tobacco, household furnishings, and health expenses.

“The November 2022 inflation outturn of 8.0 percent is within the BSP’s forecast range of 7.4 to 8.2 percent. Inflation is projected to decelerate in the subsequent months due to easing global oil and non-oil prices, negative base effects, and as the impact of BSP’s cumulative policy rate adjustments work its way to the economy,” the central bank said in a statement.

However, inflation is seen likely to stay elevated in 2023.

“The key upside risks are the potential impact on international food prices of higher fertilizer prices, trade restrictions and adverse global weather conditions,” the BSP added.

“Higher food prices from further domestic weather-related disturbances and supply disruptions in key food commodities such as sugar and meat, as well as pending petitions for transport fare hikes were also identified as upside risks to the inflation outlook in the latest round.”

Last month’s inflation rate is the highest since November 2008.

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