The Bangko Sentral ng Pilipinas (BSP) sees Philippine inflation hovering from 2.4 percent to 3.2 percent this November from higher oil and food prices, lower power rates and a stronger peso.

The central bank’s November inflation forecast is still within the 2.5 percent for October. For 2020, the BSP sees the inflation rate hitting 2.3 percent to 2.4 percent.

Among the more telling factors for the November inflation rate is the stronger peso, currently trading at P48 to a dollar. This is better than the P50 to a dollar at the latter part of last year.

The typhoons that recently hit the country resulted in a price spike for some food products. Oil companies have also hiked their fuel prices in the past months.

“Higher domestic oil prices, as well as the impact of weather disturbances on the prices of rice and select agricultural commodities contributed to upward prices pressures during the month,” BSP Governor Benjamin Diokno said in a Viber message to reporters.

“These could be partly offset by the downward adjustment of electricity rates in Meralco (Manila Electric Co.) serviced areas and the contributed appreciation of the peso,” he added.

For 2021, the BSP estimates inflation at 2.7 percent, and 2.9 percent for 2022.

Generally, the BSP still sees the country having a benign inflation environment, as consumer price growth is projected to remain within the government’s 2- to 4-percent target.

“The balance of risks to the inflation outlook also remains tilted toward the downside, owing largely to potential disruptions to domestic and global economic activity amid the ongoing pandemic,” Diokno said earlier. CURRENTPH