March 21, 2023

Inflation may reach 8.3% in January – BSP

The Bangko Sentral ng Pilipinas (BSP) said on Tuesday, Jan. 31, that inflation remained high in January, and may likely settle between 7.5 and 8.3 percent.

“The BSP projects January 2023 inflation to settle within the range of 7.5 to 8.3 percent. Upward price pressures for the month are expected to emanate from higher electricity rates, approved water rate rebasing, higher domestic petroleum prices, uptick in the prices of key food items, and the annual increase in sin taxes,” said the BSP.

Meanwhile, lower LPG prices as well as peso appreciation could contribute to price pressures easing up in January.

“The BSP will continue to adjust its monetary policy stance at the necessary pace to prevent the further broadening of price pressures, and monitor emerging price developments closely in accordance with the BSP’s price stability mandate,” it said.

The BSP remains confident that it will be able to bring inflation within two to four percent by the third or early fourth quarter this year and to below two percent by early 2024.

The Philippine Statistics Authority will report January inflation data on Feb. 7.