I would like to thank EJAP President Louella Desiderio, the Economic Journalists’ Association of the Philippines for inviting me to share the Bangko Sentral’s views on inflation, as well as our game plan to address it. In the first part, I will dissect the numbers to identify the real drivers of the recent spike in inflation.
I will then explain the BSP’s inflation outlook, or how we expect the inflation environment to evolve over the next two years. Casting inflation against this proper context helps put into sharper focus the policy measures needed to address the issue.