The BSP projects March 2021 inflation to settle within the 4.2 -5.0 percent range. The downward adjustment in Meralco electricity rates as well as lower prices of key food items due to supply conditions and the continued implementation of price caps on meat products are the main sources of downside price pressures during the month. These factors could be partly offset by higher oil prices and the peso depreciation, however.
Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate. (Press Release)