Inflation could pick up this month given higher oil and power prices, the Bangko Sentral ng Pilipinas (BSP) said in Wednesday as it offered a 2.9-3.6 percent forecast range for November.
“Higher domestic petroleum prices and electricity rates in Meralco-serviced areas could contribute to upward price pressures, which could be partly offset by the slightly stronger peso for the month,” the central bank said.
Inflation rose to to a three-year high of 3.5 percent in October, from 3.4 percent a month earlier, due to higher prices of non-food commodities. This brought the 10-month average to 3.2 percent.
While the rise in consumer prices could accelerate, the BSP said “average inflation is expected to remain within the national government’s target range of 3.0 percent ± 1.0 percentage point for 2017.”
Pump prices were hiked this month and Manila Electric Co. also announced a 0.3436-centavo per kilowatt-hour increase for November.
The peso, meanwhile, jumped back into a P50-per-dollar territory November 16, a development attributed to better-than-expected third quarter economic growth numbers.
Official inflation data for the month will be announced on December 5.