MANILA – Higher prices of electricity and key food commodities are expected to push domestic inflation rate in September 2022 to between 6.6 to 7.4 percent, higher than the previous month’s level.
In a statement on Friday, the Bangko Sentral ng Pilipinas (BSP) said depreciation of the Philippine peso against the US dollar is also projected to be among the factors for the elevated rate of price increases for the month.
“This could be offset in part by the decline in local fuel prices and lower meat prices,” it said.
The BSP said it “will continue to monitor very closely emerging price developments to enable timely intervention to prevent the further broadening of price pressures, in accordance with the BSP’s price stability mandate.”
Inflation rate ended its five-month climb last August when it decelerated to 6.3 percent from month-ago’s 6.4 percent.
It surpassed the government’s 2-4 percent target band last April when it expanded by 4.9 percent year-on-year, the highest since January 2019.
The average inflation in the first eight months this year stood at 6.3 percent.
The central bank forecasts inflation to average at 5.6 percent this year, with the monthly inflation rate seen to peak in the last quarter of this year. (PNA)