Medalla sees ''inflation peaking in December''
Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said the ''latest baseline forecasts point to inflation peaking in December, after faster-than-expected inflation outturn in November.''
In his Twitter account, Medalla said the November outturn was ''due to higher food prices caused by the recent typhoons.''
''Thereafter, inflation is seen to decelerate on a month-on-month basis due to lower fuel pump prices and the appreciation of the peso,'' said Medalla.
The BSP is ''not as concerned as we were before in matching the (US) Fed (in raising interest rates),'' added Medalla.
The BSP raised policy rates by 50 basis points in Thursday, while the US Federal Reserves hiked its rates by 50 basis points early Thursday.
Policy rates are now at 5.5 percent, highest since December 2008 while inflation as of November was 8 percent.
Medalla said '' the environment has since changed: depreciation pressures have diminished and oil prices are on the decline.''
''This gives us room to pause and reflect,'' he added. DMS
