BSP Forecasts Below 2% inflation for Dec. ’20, Jan. ’21

Bangko Sentral ng Pilipinas (BSP) forecasts the inflation to go down less than 2 percent for the months of December 2020 and January 2021.

BSP has also assures the public not to be worried and the forecast will only be due to higher year-ago rates.

According to BSP Deputy Governor Francisco Dakila Jr., the inflation rate was 0.7 percent in December 2019 and went to 0.6 percent in January 2020. He also said while average inflation is expected to rise in the next two years, the figures are still within the government’s 2 percent to 4 percent target band until 2022, in a briefing streamed on Facebook.

The inflation rate was 2.5 percent in December 2019 and 2.9 percent in January 2020, with forecast inflation to average 2.3 percent this year, 2.8 percent in 2021, and 3 percent in 2022.

Inflation in Q3 2020 went up to 2.5 percent year on year from Q2’s 2.3 percent and 1.7 percent from a year ago. (GFB)