BSP Governor Benjamin Diokno
MANILA – Monetary authorities project an acceleration of domestic inflation rate for March 2022 to 3.7 percent from the previous month’s 3 percent due to an uptick in oil prices, among others.
In a Viber message to journalists on Thursday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the forecast range for the month is between 3.3 to 4.1 percent.
“The continued oil price hikes, along with high electricity rates in Meralco-serviced areas, higher meat prices, and the peso depreciation are the primary sources of inflationary pressures during the month,” he said.
These factors are, however, projected to be countered by the lower water rates in areas being serviced by both the Maynilad and Manila Water as well as the decline in the prices of rice, fish, and vegetables “owing to easing supply conditions,” he said.
“Looking ahead, the BSP will continue to monitor emerging price developments and possible second-round effects to help achieve its primary mandate of price stability that is conducive to balanced and sustainable economic growth of the economy,” he added.
The rise of oil prices in the international market made the central bank’s policy-making Monetary Board (MB) hike the BSP’s average inflation forecasts recently.
BSP’s average inflation projection for this year was changed to 4.3 percent, which is higher than the government’s 2-4 percent target band, and to 3.6 percent for 2023.
These were previously at 3.7 percent for 2022 and 3.3 percent for 2023. (PNA)
