MANILA – The Bangko Sentral ng Pilipinas is confident of manageable inflation in the coming months after the December 2011 level further decelerated to four percent over month-ago’s 4.7 percent, a government press release said.
Rate of price increases last December was at the lowest end of central bank’s four to 4.9 percent projection for the month bringing the average for the 12-month period to 4.4 percent, within the government’s three to five percent target.
A year-ago, the inflation rate was, however, lower at 3.1 percent.
Relatively, core inflation, which excludes volatile items like food and oil also declined to 3.4 percent last December over the previous month’s 3.7 percent resulting to the 3.6 percent average for 2010.
“This adds to our confidence regarding our assessment that inflation remains manageable over the policy horizon,” BSP Governor Amando Tetangco Jr. said.
He said, on the other hand, that they continue to monitor negative developments overseas and its possible impact on domestic prices.
“We continue to be mindful of global developments, particularly geopolitical disturbances in the Middle East that may negatively impact on the current sanguine outlook,” Tetangco said, in the press release.
“BSP will make adjustments as necessary to ensure that our monetary policy settings remain appropriate,” he added.*PNA