MANILA – The Bangko Sentral ng Pilipinas (BSP) has a forecast range of 0.6 percent to 1.4 percent for September inflation given the sustained drop in domestic rice prices and power rates.
In a statement Monday, the central bank said its Department of Economic Research, however, projects the impact of lower rice and power rates to be countered by recent hikes of fuel prices resulting from similar adjustments in the international oil market.
It also cited higher prices of some food items due to weather conditions.
“Moving forward, the BSP will remain watchful of economic and financial developments that could affect the inflation environment in line with its commitment to price stability conducive to long-term economic growth,” the statement added.
Last August, headline inflation decelerated further to 1.7 percent from month-ago’s 2.4 percent, bringing the year-to-date average to three percent, the mid-point of the government’s two to four-percent target.
Last week, BSP’s policy-making Monetary Board cut anew the central bank’s average inflation forecast to 2.5 percent from 2.6 percent previously due to base effects of last year’s elevated inflation rate. (PNA)
