A survey conducted by the Bangko Sentral ng Pilipinas (BSP) sees two-year slower increase in consumer prices starting this year.
The survey, which was conducted from December 9 to 13, found the inflation easing to 3.3 instead of 3.2 percent this year. Inflation has increased to a three-year high of 4.5 percent last year, edging further from 2.6 percent in 2020.
For 2023, the survey’s respondents expect a lower inflation of 3.2 percent instead of 3.3 percent.
The economists and analysts, according to BSP in its fourth quarter report, expect the “average inflation to return close to the midpoint of the target by 2022 and 2023.”
About 74.8 percent of the 20 respondents believe inflation could settle within the BSP’s 2-4 percent target range this year, the BSP said.
Among the upside risks to inflation include election-related spending, less stringent quarantine measures and normalization of business activities given the improved pace of vaccinations to boost domestic demand, and increased government spending on infrastructure, the Bilyonaryo reported.
Soaring global oil prices that could result in higher transport costs as well as supply chain disruptions could also put pressure on consumer prices
Most analysts also anticipate the BSP’s Monetary Board to raise key policy interest rate by 25 to 150 basis points in 2022 and 2023. – The Sun Monitor