The BSP continues to see a manageable inflation outlook over the policy horizon after taking into consideration the latest inflation reading in July. Inflation is projected to remain close to the midpoint of the National Government's range target of 3.0 percent 1.0 percentage point in 2017 to 2019. The inflation path will be supported by the continued strength of the domestic economy as well as negative base effects in the last four months of 2017. The within-target path of inflation over the policy horizon provides the BSP with the flexibility to assess our monetary tools to enhance further our responsiveness to the evolving requirements of the economy with due consideration of external factors with potential impact on domestic monetary conditions.

Source: Bangko Sentral ng Pilipinas (BSP)