In a statement on Friday, Oct. 4, the central bank noted that the latest consumer price index came in below even its most optimistic forecast of 2.0 percent to 2.8 percent.
This decline was driven by lower-than-expected prices of some food items and a reduction in transport costs.
The September figure is consistent with the BSP’s outlook of further inflation moderation in the coming quarters, supported by easing supply pressures on key food commodities and negative base effects.
Despite the sharp inflation drop, the BSP has maintained its stance to take measured steps in its monetary policy easing bias — amid speculation that lower inflation could prompt it to cut rates further — ensuring price stability while supporting sustainable economic growth.
The central bank noted that risks to inflation remain tilted to the downside for 2024 and 2025, mainly due to the lower import tariffs on rice.
However, slight upside risks persist for 2026, stemming from higher electricity rates and global uncertainties, particularly geopolitical tensions in the Middle East and Ukraine, which could affect oil and food prices.
The BSP said it will review the latest inflation data at its next monetary policy meeting on Oct. 16, 2024.
