Inflation seen dropping in January
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Posted on January 27, 2012 08:31:49 PM
INFLATION could ease this month as lower utility costs offset higher food prices, the Bangko Sentral ng Pilipinas (BSP) chief said on Friday.
Under a new data series based on 2006 prices to be used solely starting this year, inflation hit an 11-month low of 4.2% in December, down from November’s 4.8%.
“Inflation in January remained manageable as increases in the prices of select fruits and vegetables were likely offset by reductions in utility charges,” Mr. Tetangco said.
The central bank last year said it expected one-off price hikes due to the impact of tropical storms on the agriculture sector.
Inflation data for January is scheduled to be released on Feb. 7.
Sought for comment, Security Bank Corp. economist Patrick M. Ella said fuel price hikes during the month would keep inflation “no lower than 4%”.
Mr. Tetangco said the central bank would continue monitoring external developments that might impact inflation.
“The BSP will remain watchful of local and global developments that could create price pressures to ensure that our policy settings remain appropriate,” he said.
New inflation targets using the 2006 data series are also “forthcoming,” the central bank chief said.
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Inflation seen dropping in January
