Oct. inflation rises to 2.3%

Year-on-year headline inflation increased to 2.3 percent in October from 1.9 percent in September. This is within the BSP’s forecast range of 2.0 – 2.8 percent for the month. 

The resulting year-to-date average of 3.3 percent is also within the government’s inflation target range of 2-4 percent for the year. 

On a month-on-month seasonally adjusted basis, headline inflation in October rose to 0.1 percent from negative 0.1 percent in September. 

Meanwhile, core inflation was unchanged at 2.4 percent in October from the previous month’s rate.

Inflation rose due to price increases of food. Year-on-year rice inflation increased in October as retail prices remained elevated compared to the previous year. 

However, month-on-month rice inflation declined further with the continued arrival of rice imports and the onset of the main harvest season. Year-on-year vegetable inflation was also less negative during the month, contributing to the uptick in food inflation.

The latest inflation outturn is consistent with the BSP’s assessment that inflation will remain near the lower end of the target range in the coming quarters. Nevertheless, the BSP will keep a close watch on the effects of recent weather disturbances on prices. 

Looking ahead, the BSP will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment.