Central Bank: "October Inflation Likely to Hit 7.1–8.1%" — Possibly the Highest in Over 3 Years

Central Bank: "October Inflation Likely to Hit 7.1–8.1%" — Possibly the Highest in Over 3 Years

📌 On Friday, October 30, the Bangko Sentral ng Pilipinas (BSP) projected October inflation at 7.1–8.1%. Energy prices remain high because of the Middle East crisis, pushing up fuel, electricity, and transport fares, and if this continues, inflation could reach its highest level in over three years.

■ What's Changing
· The BSP cited rising domestic fuel, electricity, and transport costs as factors pushing inflation up.
· On the other hand, it expects good supply to bring down prices of rice, vegetables, meat, and fish, partly offsetting the upward pressure.
· In April, inflation hit 7.2%, the highest in three years, as fuel prices jumped due to the blockade of the Strait of Hormuz. It then eased, but rose back to the same level in September (Philippine Statistics Authority data).
· The BSP has raised interest rates four times in a row since April, and last week it raised its benchmark rate (the reverse repurchase rate) by 0.5 percentage points. The BSP said it will continue to monitor how the Middle East situation affects prices.

■ Tips for Residents and Travelers
· Fuel, electricity, and transport costs keep climbing, so it's wise to set aside a generous budget for transportation and electricity bills.
· Prices of rice, vegetables, meat, and fish are trending down, so grocery shopping may be relatively less burdensome.
· These figures are the BSP's forecast; the actual October inflation rate will be confirmed by the Philippine Statistics Authority's release.

■ Source
News5 (10/30)