October inflation rate at three-month high

October inflation rate at three-month high

Philippine inflation accelerated to a three-month high of 2.5 per cent year-on-year in October, from 2.3 per cent in the previous month. The rate of increase in the prices of basic commodities last month brought the end-October headline inflation well-within the government’s 2-4 per cent target range.

Despite this, the Bangko Sentral ng Pilipinas (BSP) said the pace of increases in the prices of basic commodities and services would likely stay muted over the short term due to weak demand both locally and abroad, given the lingering economic effects of the coronavirus pandemic.

“The October 2020 inflation was within the BSP’s forecast range of 1.9-2.7 per cent… The latest inflation outturn is consistent with the BSP’s prevailing assessment of favorable inflation dynamics over the policy horizon,” said BSP governor Benjamin Diokno.

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