NextGen Day

Manila, Philippines – A prominent official from the central bank indicated on Wednesday that assessments of the inflation landscape suggest that the inflation rate 2024 is anticipated to stay within the government’s target range of 2-4%, even as global oil prices continue to rise.

During the Davao City leg of the Philippine Economic Briefing, streamed live through the Bangko Sentral ng Pilipinas’ (BSP) official Facebook page, BSP Deputy Governor Francisco Dakila Jr. emphasized that despite recent upticks in global oil prices, which are also being felt domestically, “there’s a good margin for oil.”

“Our simulations demonstrate that we have a threshold of approximately USD 100 per barrel for oil before it would breach our inflation target for the upcoming year. Currently, we’re operating within the USD 80 per barrel range,” Dakila explained.

Recent data has shown a fresh surge in global oil prices, with Brent crude climbing by 83 cents to USD 86.17 per barrel and West Texas Intermediate (WTI) increasing by 98 cents to USD 82.92 per barrel on Tuesday.

Given the significant impact of oil prices on the overall rate of price increases, these developments have reverberated across various commodities.

Amid the evolving oil price dynamics, Dakila pointed out that monetary authorities maintain their projection of the monthly inflation rate converging back to within-target levels during the last quarter of the year.

After reaching a 14-year high of 8.7% in January, domestic inflation has decelerated, settling at 4.7% by July. This has resulted in a seven-month average of 6.8%.

BSP’s inflation forecast for the current year stands at an average of 5.4%, while it anticipates a decline to around 2.9% for 2024.

“In fact, there is a strong possibility that inflation will approach or even slightly dip below the lower bound of the target by the first quarter of the following year, primarily due to base effects,” Dakila noted.

—

As global oil prices exert inflation pressure, the BSP’s projections assure that the 2024 inflation rate will remain within the government’s target range. Despite the challenges posed by escalating oil costs, the central bank’s proactive measures and insights stabilize the economy’s price dynamics.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---