This is a stark contrast to last year’s rapidly rising inflation figures that was only arrested through the adoption of timely monetary action by the BSP and non-monetary measures by the Executive department. Looking ahead, we expect inflation to remain on a target-consistent path for 2019 and 2020.
The latest baseline forecasts (as of 9 May 2019 MB policy meeting) indicate that inflation is projected to average at 2.9 percent this year while inflation forecast for next year is slightly higher at 3.1 percent. This is due largely to the rebound in global crude oil prices. Similarly, forecasts of other institutions generally convey the same expectations.