The central bank said consumer prices in the Philippines are expected to moderate further in the remaining months of the year as supply conditions continue to improve, based on current indicators.
This week the central bank is expected to announce its inflation forecast for November, with the official figure set for release by the Philippine Statistics Authority on December 5.
“We do expect that there will be further moderation in consumer prices,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo told reporters on Monday.
Guinigundo cited improvements in rice supply, oil prices and port decongestion.
The BSP official explained that rice prices are seen decelerating further when the harvest season in December augments food supply. Additional deliveries of imported rice to the country will also boost local supply of the grain, which should lower its prices.
There is no significant weather related disturbances that could affect the harvest season, he added.
Guinigundo also cited weak oil prices amid strong supply and weak demand, as well as easing port congestion, as positive factors for the slowdown in inflation.
In October, headline inflation dropped to a year-on-year rate of 4.3 percent from 4.4 percent in September due to ample food supply and the easing of logistics bottleneck at the port of Manila.