Inflation targets to stay the same this year and next, BSP says
10/13/2009 | 09:47 PM
Inflation targets will stay the same this year and next, said a Philippine agency whose mandates include price stability.
Inflation goals will be kept despite the temporary surge in the prices of food and other basic commodities resulting from the shortage wreaked by two typhoons, the Bangko Sentral ng Pilipinas (BSP) said.
“The inflation targets do not appear to be at risk even if there is temporary uptick in prices as a result of supply factor following a series of calamities," BSP Governor Amando M. Tetangco Jr. said.
The rise in consumer prices are expected to hit anywhere between 2.5 to 4.5 percent this year and 3.5 to 5.5 percent next year, an earlier forecast by the BSP indicated.
However, Tetangco expects a slight rise in inflation – a little over 3.0 percent this year and 3.4 percent next year.
“We have enough head room for 2009 and 2010. We don’t see this as creating a threat to the inflation targets at this point," he added.
For September, inflation rose to 0.7 percent after declining for six straight months to a 20-year low of 0.1 percent in August.
As a result, the average inflation rate fell to 3.4 percent during the January to September period from 9.2 percent during the same period last year.
September’s inflation was caused by rising prices of food, beverages, and tobacco.
The BSP’s Monetary Board – the agency’s policy-making body – maintained interest rates at an all-time low during its last October 1 meeting, a move seen to further encourage lending that will boost the economy. - GMANews.TV
Inflation goals will be kept despite the temporary surge in the prices of food and other basic commodities resulting from the shortage wreaked by two typhoons, the Bangko Sentral ng Pilipinas (BSP) said.
“The inflation targets do not appear to be at risk even if there is temporary uptick in prices as a result of supply factor following a series of calamities," BSP Governor Amando M. Tetangco Jr. said.
The rise in consumer prices are expected to hit anywhere between 2.5 to 4.5 percent this year and 3.5 to 5.5 percent next year, an earlier forecast by the BSP indicated.
However, Tetangco expects a slight rise in inflation – a little over 3.0 percent this year and 3.4 percent next year.
“We have enough head room for 2009 and 2010. We don’t see this as creating a threat to the inflation targets at this point," he added.
For September, inflation rose to 0.7 percent after declining for six straight months to a 20-year low of 0.1 percent in August.
As a result, the average inflation rate fell to 3.4 percent during the January to September period from 9.2 percent during the same period last year.
September’s inflation was caused by rising prices of food, beverages, and tobacco.
The BSP’s Monetary Board – the agency’s policy-making body – maintained interest rates at an all-time low during its last October 1 meeting, a move seen to further encourage lending that will boost the economy. - GMANews.TV
