BSP leaves inflation forecast to private sector

MANILA, July 27 – The Bangko Sentral ng Pilipinas (BSP) will no longer issue inflation forecast as it leaves to the hands of the private sector economists the crafting of the monthly inflation projections.

BSP Governor Nesting A. Espenilla Jr., when asked about the central bank’s July 2017 inflation forecast, said he is “not inclined to give July forecast.”

“That’s not BSP policy focus. Our focus is on the inflation path two-years ahead,” he said in a Viber message to journalists.

Had Espenilla issued the central bank’s inflation forecast for the seventh month this year, it will be his first after starting at his new job last July 3.

In the past, BSP Governor Amando M. Tetangco issues the central bank’s inflation forecast in the last week of every month.

The Philippine Statistics Authority (PSA), meanwhile, issues the monthly inflation report on the sixth day after the given month. If the day falls on a Monday the report is released the following day.

In the first half of 2017, rate of price increases averaged at 3.1 percent, slightly above the mid-point of the central bank’s two to four percent target range for 2017 until 2020.

Last June alone, inflation decelerated further to 2.8 percent from month-ago’s 3.1 percent and after peaking so far this year at 3.4 percent last March and April.

The central bank continues to see manageable inflation ahead with the 2017 figure seen to average at 3.1 percent and lower to three percent in the next two years. (Joann Santiago/PNA)

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