By Joann Santiago
MANILA, Feb. 12 (PNA) — Combined effects of drop in the international oil prices, stronger peso, and lower–than-expected global economic output made Philippine monetary officials cut their inflation projections for 2015 and 2016.
In a briefing Thursday, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the central bank’s policy-making Monetary Board (MB) now sees inflation to average at 2.3 percent this year and 2.5 percent next year.
These are lower than the three percent and 2.6 percent projections for 2015 and 2016, respectively that the Board made last December 2014, their last policy meeting for last year.
Guinigundo said the Board now sees composite oil prices to be at Php 40-41 per liter this year and Php 34-35 per liter next year.
The Board now sees Dubai crude oil to be around USD 54.83 per barrel for 2015 and USD 62.55 per barrel for 2016.
These were previously at USD 76.60 per barrel for 2015 and USD 80.17 per barrel for 2016.
Guinigundo said the big drop in the rate of domestic price increases last December to 2.7 percent from month-ago’s 3.7 percent is also a factor in the BSP’s latest inflation forecast for the two-year period.
He also said that reports of possible delay in the power rate adjustments as well as lower amount of the possible adjustment in the price of rice being distributed by the National Food Authority (NFA) are also positive for domestic inflation rate. (PNA)