(File photos)
MANILA – Higher prices of oil products, basic and prime commodities, select fruits and vegetables, rice, as well as power rates in areas being serviced by the Manila Electric Company (Meralco) are seen to accelerate the inflation rate in September to a range of 4.8 percent to 5.6 percent.
In a statement on Thursday, the Bangko Sentral ng Pilipinas (BSP) said these factors are seen to be countered by the drop in meat prices and strengthening of the peso against the US dollar.
“Moving forward, the BSP will continue to monitor emerging price developments to help ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” it added.
In August, the rate of price increases rose to 4.9 percent, its highest since January 2019.
Average inflation in the first eight months this year stood at 4.4 percent, above the government’s 2 percent to 4 percent target band.
Monetary authorities recently hiked their average inflation forecasts for this year until 2023 to 4.4 percent, 3.3 percent, and 3.2 percent, respectively.
These were previously at 4.1 percent for 2021 and 3.1 percent for both 2022 and 2023.
The upward revisions in these forecasts were attributed to the impact of higher-than-expected inflation in August, upticks in the prices of basic and prime commodities, and the lower-than-expected arrival of imported pork. (PNA)
