SUMMARY
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MANILA, Philippines – Due to higher prices of power and fuel as well as the impact of Super Typhoon Yolanda (Haiyan), inflation for December is likely to hit this year’s all-time high.
In a text message to reporters on Thursday, December 26, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco said that December inflation is likely to fall within the 3.8% to 4.7% range, higher than this year’s recorded 9-month high of 3.3% in November.
The projected inflation rate for December, however, is still within the government’s target of 3% to 5%.
The BSP earlier warned that inflation would inch up in the next months after Typhoon Yolanda.
Damage to agriculture caused by Yolanda is now at P18.36 billion, according to the latest National Disaster Risk Reduction and Management Council report released on Tuesday, December 24.
Of the P18.36 billion, damage to crops – rice,corn and others crops – amounted to P7.63 billion, while damage to livestock and fisheries reached P2.89 billion and P5.96 billion, respectively.
The BSP looks at the inflation rate when setting its policy on interest rates. A benign inflation lets the central bank keep rates low, increasing the demand for loans. Loan provides support to consumer and business spending.
Tetangco said that the “BSP will remain vigilant in monitoring price pressures to ensure price stability conducive to a balanced and sustainable economic growth.” – Rappler.com
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