Inflation touches record low, outlook benign

We have maintained the view that inflation is yet to reach its trough and in the month under review, the deceleration reached 2.6%, the lowest inflation rate we have on record.

This marks the eighth consecutive month that inflation came in either at the 3.0% lower bound or below. The short-term inflation outlook has been easier to predict with a reasonable degree of confidence given globally low inflation rates as well as soft domestic demand demonstrated by a stable core inflation rate of 3.6%.