THE current manageable inflation environment could be sustained over the medium term although there are upside risks to the inflation outlook, Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. said on Thursday.
He issued the statement after the Development Budget Coordination Committee on Dec. 22 decided to keep the current inflation target of 2 percent to 4 percent from 2018 to 2020.
“Inflation projections and expectations continue to indicate that inflation could settle within the current inflation target, although there are upside risks to the outlook,” Espenilla said in a statement.
“The inflationary impact of the potential increases in international commodity prices is assessed to be moderate, supported by lower pass-through to inflation of exchange rate and external commodity price inflation,” he said.