© Reuters. Bangko Sentral ng Pilipinas Governor Felipe Medalla poses for a photograph in his office at Manila, Philippines, November 18, 2022. REUTERS/Eloisa Lopez/Files
MANILA (Reuters) – Philippine inflation is likely to be closer to 3% in late-2023 and in 2024, central bank governor Felipe Medalla said on Tuesday. Medalla, speaking at a media forum, also said the economy remained strong and that pent-up domestic demand will continue driving growth. “By the third quarter of this year, inflation will be back to normal,” he said. Annual inflation soared to 8.1% in December, the highest since 2008, bringing the full-year average to 5.8%, outside the central bank’s 2%-4% target range.
The central bank earlier this month said it was ready to take all policy action necessary to bring inflation back within the target. Monetary authorities are meeting for a rate setting meeting on Feb. 16.