MANILA – Higher petroleum products prices and power rates in areas serviced by the Manila Electric Company (Meralco) are expected as upside risks to this month’s inflation, which is projected to stay between 3.9 to 4.7 percent.
In a Viber message to journalists on Wednesday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said weaker peso during the month is also among the upside price pressures during the month.
These factors are, however, seen to be countered by the “decline in prices of key food items, such as rice, meat, and fruits due to improved supply conditions”, he said.
“Moving forward, the BSP will continue to monitor emerging price developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” he added.
The monthly rate of price increases has been steady at 4.5 percent from March to May this year after surpassing the government’s target band last January when it accelerated to 4.2 percent.
It further rose to 4.7 percent last February, primarily due to higher oil prices and the supply constraints on pork due to the impact of the African swine fever.
Average inflation to date stood at 4.4 percent, higher than the government’s 2-4 percent target range.
Monetary authorities forecast the elevated inflation rate to remain until the third quarter of the year, with the average forecast for this year at 4 percent. (PNA)
