Higher inflation rate in November a ‘temporary uptick’ – BSP

Higher inflation rate in November a ‘temporary uptick’ – BSP

The Philippine inflation rate has hit a 20-month high in November, rising 3.3% from a year earlier. While this is outside Bangko Sentral ng Pilipinas’ (BSP) 2.4% to 3.2% goal, BSP Governor Benjamin Diokno said this is just a ‘temporary uptick,’ and would not affect the government’s two-four per cent target.

Diokno called the November inflation ‘transitory,’ adding that the average annual inflation will be within the government’s target range of two-four per cent.

Downside risks to economic growth both globally and locally remains despite new developments in the COVID-19 vaccines, and mainly this is due to “logistical challenges in the distribution of the vaccine” which Diokno said “would have to be addressed before the recovery could resume.”

According to the central bank chief, uncertainty remains high in the near term, and “the reimposition of lockdowns could further dampen economic recovery.”

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