The Bangko Sentral ng Pilipinas (BSP) on Friday forecast inflation rate for December this year to settle between 2.3 and 3.1 percent, or below the upper range of the 2- to 4-percent  target of the government.

“Upward price pressures in December could stem from increased prices of major food items owing to the supply disruptions from recent weather disturbances, as well as higher electricity rates and petroleum prices,” the BSP said in a statement.

The central bank added that lower prices of agricultural commodities like rice could offset the price increases of the aforementioned items.

In November 2024, inflation stood at 2.5 percent, slightly higher from October’s rate of 2.3 percent.

The BSP sees full-year inflation at 3.2 percent, which is within the government’s target of 2 to 4 percent.

“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making,” the central bank added.

During the Development Budget Coordination Committee meeting on Dec. 2, in consultation with the BSP, the government retained inflation target of 2 to 4 percent until the end of the Marcos administration.

“By announcing a medium-term inflation target, the BSP aims to strengthen its forward-looking approach to monetary policy formulation with the view of helping anchor inflation expectations to the target,” the BSP said.