MANILA: The Philippine central bank said on Tuesday it will take a “measured approach” in its policy easing cycle as annual inflation accelerated in October on higher food and transport prices.

The consumer price index rose 2.3% in October from the previous month’s 1.9% print, the statistics agency said on Tuesday, below the 2.4% forecast in a Reuters poll of economists.

Core inflation, which strips out volatile food and energy items, was at 2.4% in October, steady with September’s rate.

Last month’s inflation print brought average inflation in the first 10 months of the year to 3.3%, within the central bank’s 2% to 4% target range.

The Bangko Sentral ng Pilipinas (BSP) bank said in a statement inflation will trend closer to the lower end of its target, even as risks to the outlook for next year and 2026 shift to the upside.

“The Monetary Board will maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment,” the BSP said.

An inflation rate within the central bank’s target range would help justify further easing to match rate cuts of the US Federal Reserve, said Michael Ricafort, an economist at Rizal Commercial Banking Corp in Manila.

A Reuters poll of economists expects the US Fed to cut its key interest rate by 25 basis points on Nov. 7, with a huge majority expecting another easing of the same magnitude in December.

Philippine central bank sees Oct inflation at 2.0%-2.8%

In October, BSP Governor Eli Remolona flagged the possibility of a third quarter-point rate cut at its final meeting for the year next month, and up to 100 basis points of additional cuts next year.

The government is working to keep food available and prices steady, particularly for essential commodities, following weather disturbances, including tropical storm Trami that hampered food supply, Economic Planning Secretary Arsenio Balisacan said in a statement.