THE November 2024 inflation of 2.5 percent is within the BSP’s forecast range of 2.2 to 3.0 percent. The latest inflation outturn is consistent with the BSP's assessment that inflation will continue to trend closer to the low end of the target range in the near term. This reflects easing supply pressures for key food items, particularly rice.
Nonetheless, the balance of risks to the outlook for 2025 and 2026 has shifted toward the upside. Upside risks to the inflation outlook could emanate from the potential adjustments in electricity rates and higher minimum wages in areas outside Metro Manila, while, downside factors continue to be linked to the impact of lower import tariffs on rice.
The Monetary Board will consider the latest inflation outturn in its upcoming monetary policy meeting on 19 December 2024. The BSP will continue to maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment.
