Inflation to remain stable until 2013—BSP

Inflation rate in November likely settled within a range of 4.5 percent to 5.4 percent, according to the estimate of the Bangko Sentral.

“Although increases in electricity charges and the possible residual price impact on fruits and vegetables of the supply shock due to typhoons Pedring and Quiel could result in higher month-on-month inflation, the full-year average inflation rate is expected to be well within the target for the year of 3 to 5 percent,” said Bangko Sentral Governor Amando Tetangco Jr.

Tetangco said the inflation outlook remained anchored, with rate expected at 3 percent to 5 percent over the next two years.

“Manageable inflation is also expected over the 2012-2013 horizon. The balance of risks to future inflation continues to be tilted slightly to the downside, which allows Bangko Sentral some room for policy maneuver to address possible demand shocks from global developments, especially the fragile markets in Europe, changes in political leadership in the Middle East and signs of slower growth in China,” he said.

Inflation rate stood at 5.3 percent in October, using the 2000-based consumer price index, up from just 4.6 percent in September. Using the 2006-based CPI series, headline inflation was also higher at 5.2 percent in October from 4.8 percent in the previous month.

This brought the 10-month inflation average at 4.5 percent (2000-base year) and 4.8 percent (2006-base year), which were both within the government’s inflation target range of 3 percent to 5 percent for 2011. –Roderick T. dela Cruz, Manila Standard Today