Inflation rate in the Philippines likely accelerated to 2.4 percent in October from 2.3 percent in September, according to Standard Chartered Bank.
“We expect inflation to have edged up to 2.4 percent year-on-year from 2.3 percent in September, again on higher food inflation, which was likely 3.1 percent year-on-year,” Standard Chartered economist for Asia Chidu Narayanan said in a report Thursday.
Narayanan said housing and utilities had the second-highest weighting in the consumer price index basket and prices might have risen again in October on a low base effect. Housing inflation, which accounts for almost a quarter of the basket, was 0.9 percent in September, the fastest increase in 23 months.
“We expect transport inflation to have remained low. Inflation excluding food and energy has been below-trend so far, but is increasing. We expect inflation to average 1.7 percent in 2016, versus the year-to-date average of 1.4 percent year-on-year and 1.4 percent in 2015,” Narayanan said.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said inflation in October likely settled between 1.9 percent and 2.7 percent.
Tetangco said the effects of higher domestic oil prices and the transitory uptick in food prices in areas affected by typhoons Karen and Lawin could be partly offset by the slight decline in rice prices and power rates in Meralco-serviced areas.