Moody’s forecast 3.7% December CPI


Moody’s Analytics said it forecasts 3.7 percent for the Philippines’ December consumer price index (CPI), lower than November’s actual 4.1 percent.

Moody’s disclosed its December inflation projection in its Jan. 2 commentary. The government will announce the December CPI on Friday, Jan. 5.

Meanwhile, Moody’s forecast is within the Bangko Sentral ng Pilipinas’ (BSP) 3.6 percent to 4.4 percent December CPI projection.

Last week, BSP Governor Eli M. Remolona Jr. said he is “crossing his fingers” that the December CPI will fall below four percent.

In a statement last week, the BSP said the 3.6 percent to 4.4 percent forecast range is based on existing price factors of selected food items as well as electricity rates and oil prices.

“Higher prices of rice and meat are seen as the primary sources of upward price pressures in December. Meanwhile, lower prices for agricultural items such as vegetables, fruits, and fish along with lower electricity rates and petroleum prices are expected to contribute to downward price pressures,” said the BSP.

“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making,” it added.