THE Central Bank of the Philippines said that they are considering to keep their key rates tight as much as possible as they try to look at a continued elevated inflation rate in the coming months despite its slowdown in October.

In a statement, the Bangko Sentral ng Pilipinas said that the slower annual rate of price increases, primarily of heavily weighted food and non-alcoholic beverages, had been a factor to the slower annual inflation in October of 4.9 percent.

The said rate is lower than the previous month’s 6.1 percent, bringing the 10-month average to 6.4 percent.

The BSP said that the inflation print last month is lower than its 5.1 percent to 5.9 percent forecast for the month.

This is despite the lower prices of vegetables and rice, which offset the upward movement in utility rates.

“Nonetheless, the inflation path in the coming months is still seen to remain elevated with the 2024 central forecast shifting closer to the upper end of the inflation target range, indicating persistent price pressures. Inflation expectations have also risen further, highlighting the risk of second-round effects,” it said.

The BSP also said that the risks to the inflation outlook are projected to remain on the upside until 2025 due to the possible impact of higher transport fares, upticks in power rates and oil prices, higher-than-expected minimum wage adjustment outside Metro Manila, non-extension of Executive Order 10, or the validity of reduced import duty rate; elevated domestic food prices, and the impact of El Niño of food prices and utility rates.