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Friday, March 29, 2024

Private economists see stable inflation

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Economists from the private sector expect inflation rate to continue to be manageable in the months ahead on the back of the stronger peso and affordable price of rice with the implementation of the rice tariffication law, results of the Bangko Sentral ng Pilipinas survey conducted in December 2019 show.

The mean inflation forecast for 2020 declined to 2.9 percent from 3.1 percent during the September 2019 survey period. The mean inflation forecast for 2021, meanwhile, was steady at 3.1 percent.

“… The key downside risks to inflation are seen to emanate from the continued implementation of the rice tariffication law and a stronger peso against the US dollar,” the BSP said.

The local currency ended 2019 at 50.635 per greenback, P1.945 stronger from 52.58 on the last trading day of 2018.

On the other hand, the upside risks to inflation include strong rebound in global oil prices, higher prices of meat alternatives (such as beef and chicken and fish) amid the African Swine Fever and adverse effects of weather conditions on domestic food supply.

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