Business

BSP sees steady inflation rate in October

Price increases of basic goods will likely stay the same in October, the central bank said ahead of next week’s official data release.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno expects inflation to settle at 2.3%, well within the government’s target range of 1.9 to 2.7%.

Higher Meralco power rates, the increase in prices of liquefied petroleum gas and kerosene and the impact of typhoons are seen to accelerate inflation this month.

“These could be partly offset by lower prices for gasoline, diesel and rice as well as downward adjustments in the water rates of Manila Water and Maynilad-serviced areas,” Diokno said.

Inflation has been relatively benign, but analysts say the steady prices are also due to weak consumer spending as the pandemic forced people out of jobs and left them with little money.

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