Higher prices on the horizon

THE very low inflation we have enjoyed for the past several months appears to be a thing of the past and higher prices will persist through the coming year, according to local analysts. Because inflation is a sensitive issue that affects everyone, understanding how it works and what we can expect will help in easing its negative effects.

Inflation in November was a low 1.3 percent, but that was more than double the 0.6-percent inflation rate in the previous month. Analysts have forecast that inflation for most of 2020 will be between 2 and 3 percent, and monetary authorities at the Bangko Sentral ng Pilipinas (BSP) also believe inflation will face “upside risks” in the coming year, before easing again in 2021.