ELEVATED INFLATION. Higher prices of liquified petroleum gas (LPG), along with upticks in the prices of several food items, are projected to drive February 2023 inflation rate to between 8.5 to 9.3 percent. These factors are expected to be cushioned by lower petroleum prices and peso appreciation. (PNA file photo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) forecasts February 2023 inflation rate at range of 8.5 to 9.3 percent, citing the upside risks from higher prices of cooking gas.
In a statement on Tuesday, the central bank said elevated prices of key food items, such as pork, fish, egg and sugar, are also expected the additional drivers of the rate of price increases this month.
These factors, however, are seen to be countered by the lower prices for domestic petroleum, fruits and vegetables, chicken, and beef.
“The peso appreciation could contribute to easing price pressures during the month,” the BSP said.
This, after the peso strengthened to 54-level against the US dollar in recent weeks.
Inflation rate last January accelerated further to 8.7 percent from month-ago’s 8.1 percent. Its rise doused hopes that domestic inflation rate likely peaked last December.
“The BSP will continue to adjust its monetary policy stance as necessary to prevent the further broadening of price pressures as well as the emergence of additional second order effects,” the central bank said.
Its key policy rates have been hiked by a total of 400 basis points to help address the elevated inflation rate.
“The BSP will also continue to monitor closely emerging price developments in accordance with the BSP’s price stability mandate,” the central bank added. (PNA)
