Inflation in January is expected to hit 2.7 percent to 3.6 percent range on back of higher food prices, the central bank said today.
Central Bank Governor Amando M. Tetangco Jr. said food inflation, which account for more than half the basket of commodities making up the consumer price index or CPI, were to make up for declines in electricity bills during the month.
“Our recent runs still show a well-behaved inflation path, with full year inflation rates over the policy horizon still seen to be within target range,” Tetangco said in a text message sent to the media.
The central bank’s official inflation target for the year ranges from three percent to five percent.
In a separate interview, deputy Governor Diwa C. Guinigundo said they’re not likely to raise their targets despite the recent increase in toll fees and transport fares for both Light Rail Transit and Metro Rail Transit.
“These (higher transport fares) are not new influencing factors. We have seen them all before and took then into account,” Guinigundo said.
Tetangco said the central bank will “constantly review our inflation forecasts to ensure that these contain the most recent information.”
“We are watchful of these risks to our inflation forecast, but at the moment the forecast still shows a manageable inflation (picture),” he said.