MANILA – The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) adjusted on Thursday the inflation projections for 2018 and 2019.
In a briefing, BSP deputy governor Diwa Guinigundo said this year’s projection was raised to 4.9 percent while next year’s forecast, to 3.7 percent.
These were from the previous 4.5-percent projection for 2018 and 3.3-percent projection for 2019.
The 2020 projection, meanwhile, remained at 3.2 percent.
There figures were decided upon after the Board noted the rise of inflation in the country, which rose to a multiyear high of 5.7 percent from last month’s 5.2 percent.
Rate of price increases averaged at 4.5 percent, higher than the government’s two-to-four percent target until 2020.
Guinigundo traced the upside revision of the target for this year alone to increase of jeepney fare in the National Capital Region and Regions 3 and 4.
He said Other Transport alone is about 4.8 percent of the country’s consumer price index (CPI) basket.
Another factor is the hikes in water rates of Maynilad and Manila Water, which account for 1.2 percent of CPI last July.
Scheduled increase of excise tax on tobacco products by P2.50 per pack this year also contributed to the hike in inflation projection for this year as this accounts for 0.93 percent of CPI.
Base effects of higher inflation last year on account of Dubai oil prices are also factors to this year’s projection.
And while inflation projection for next year was revised up, Guinigundo said the level is lower than 2018.
Meantime, BSP Governor Nestor Espenilla Jr. said the Board has cited the risks that inflation might continue to surpass the target next year but stressed that what people should focus on is the full-year figure and not the monthly levels.
“At this point in time it is best to focus on the average,” he added. (PNA)
