MANILA: Philippine inflation quickened in October but within market expectations, giving the central bank room to sustain its easing cycle.
Consumer prices rose 2.3% year-on-year in October due to faster price gains in food including national staple rice, the statistics agency said Tuesday (Nov 5). The print matched the median forecast of economists in a Bloomberg survey and was within the central bank’s 2%-2.8% estimate for the month.
Inflation had decelerated to 1.9% in September, the slowest since May 2020 and below the central bank’s 2% to 4% target range.
The Philippine central bank last month reduced its benchmark interest rate by 25 basis points for the second time this year to 6% as slowing inflation gave it room for further easing.
Governor Eli Remolona has said the Bangko Sentral ng Pilipinas is unlikely to resort to half-point cuts unless the nation’s economic growth "turns out to be worse than we thought.” - Bloomberg
