PH Inflation Likely to Slow Down Says Economist

Inflation in the country is seen to slow down to 5.6% this month, according to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort.

In a Viber message sent to PNA, Ricafort said better weather conditions helped stabilize food prices, which covers one-third of the inflation basket in the country.

October’s weather has been relatively better than July and September, which helped the production of vegetables and other agricultural products.

Moreover, better rice harvest also increased the local supply of rice and is said to have also helped the lower prices this month.

Ricafort also mentioned crude oil prices have been stable this month at USD 87 per barrel.

Meanwhile, the peso exchange rate has also been in a good spot, keeping the import prices stable.

However, there is a potential risk of an El Niño drought in the fourth quarter of the year, which could lead to reduced agricultural production and a slight increase in local rice and food prices.

Despite these factors, local headline inflation is expected to gradually ease and align with the Bangko Sentral ng Pilipinas’ (BSP) target of 2% to 4% starting in the first quarter of 2024, primarily due to higher base effects. (ASC)