MANILA – An increase in the minimum public transportation fare and higher domestic pump prices, among others, are expected to push domestic inflation rate in October 2022 to between 7.1 to 7.9 percent.
In a statement on Monday, the Bangko Sentral ng Pilipinas (BSP) said depreciation of the peso against the United States dollar and upticks in the prices of some agricultural products due to recent typhoons are also seen to result in acceleration in inflation rate.
“These could be offset in part by the reduction in electricity rates for Meralco (Manila Electric Co)-serviced areas, lower LPG (liquified petroleum gas) prices, and reduction in prices of fish,” it said.
The range of projected inflation rate for this month is higher than the 6.9 percent last September, which is the highest since October 2018.
Amidst the expectations for a faster inflation rate for October this year, the BSP said the rate of price increases is “projected to gradually decelerate in the succeeding months as the cost-push shocks to inflation due to weather disturbances and transport fare adjustments dissipate.”
“Looking ahead, the BSP will continue to monitor closely emerging price developments to enable timely intervention that could help prevent the further broadening of price pressures, in accordance with the BSP’s price stability mandate,” it added. (PNA)