The country's inflation rate slowed to 4.8% for the 3rd quarter of the year after accelerating to 4.9% in August, and from 4% in July, Bangko Sentral ng Pilipinas (BSP) said on Thursday, in a press briefing of the 3rd Quarter inflation report.
Headline inflation rose to 4.5% higher than the quarter and year-ago rates 4.3% and 2.5% respectively, resulting in an average of 4.5%, which falls above the government's target rate of 2 to 4 percent.
While the third-quarter average was higher than the government’s 2 to 4 percent target for the year, core inflation remained steady at 3.2% in the third-quarter, the central bank said.
The bank even noted that the 3rd quarter captured the real GDP growth since the pandemic.
“In response to the manageable inflation environment, the BSP maintained its accommodative monetary policy settings during the third-quarter of 2021 mainly to sustain the economy’s nascent recovery,” Diokno, the governor of BSP, said during Thursday’s online briefing.
Risks to the inflation outlook shifted towards the upside for the rest of 2021, but remained broadly balanced for 2022 and 2023.
“Upside risks could emanate from pressures on international commodity prices amid improving global demand and lingering supply-chain bottlenecks, as well as the potential effects of weather disturbances and a possible prolonged recovery from the ASF outbreak,” the BSP said.
Meanwhile, the delay in lifting containment measures could further dampen global growth and domestic demand. The central bank added that the continued risk of COVID-19 infections poses downside risks to the outlook.
BSP will continue the implementation of its lowest interest rate of 2% for seven consecutive meetings.
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Written by: Maria Danica Esparrago Layout and Design by: Gerald Reyes
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