‘Inflation likely eased to 4 percent in December’

MANILA, Philippines — The country’s inflation is expected to have further slowed in December and returned to the central bank’s target range, according to UK-based think tank Pantheon Macroeconomics.

“Inflation likely inched down minimally to four percent in December from 4.1 percent in November,” Pantheon Macroeconomics chief emerging Asia economist Miguel Chanco and senior Asia economist Moorthy Krshnan said in a report.

With this forecast, the think tank expects inflation to return to the upper end of the Bangko Sentral ng Pilipinas (BSP)’s target range of two to four percent for the first time since March 2022.

“Cooling food inflation will be the primary drag,” Chanco and Krshnan said.

Pantheon Macroeconomics’ inflation forecast for December is within the BSP’s projected range of 3.6 to 4.4 percent.

Earlier, the BSP said it sees higher prices of rice and meat as primary sources of upward price pressures in December.

On the other hand, the BSP expects lower prices of agricultural products such as vegetables, fruits and fish contributing to downward price pressures.

It also cited lower electricity rates and petroleum prices as those likely to contribute to downward price pressures.

Last November, headline inflation eased to a 20-month low of 4.1 percent from October’s 4.9 percent due to slower food price upticks.

Food also registered a lower inflation of 5.8 percent in November from 7.1 percent in October.

From January to November, inflation averaged 6.2 percent.

The Philippine Statistics Authority is set to release inflation data for December on Jan. 5.