MANILA – The Bangko Sentral ng Pilipinas (BSP) projected August inflation to settle within the 4.1 to 4.9 percent range.
Higher prices for liquefied petroleum gas, Meralco electricity, and key food items, as well as the peso’s depreciation, are sources of upward price pressures during the month.
“These could be offset in part by the decline in domestic petroleum and rice prices,” the central bank said on Tuesday.
Official inflation figures for August are set to be announced by the Philippine Statistics Authority on Sept. 7.
The central bank’s forecast for August is higher than the four percent inflation seen in July, the lowest level in seven months.
Earlier this month, the BSP warned that inflation may remain elevated in the short term before settling within the government target of two to four percent.
Inflation in 2021 could average 4.1 percent, higher than the previous forecast of four percent, the BSP has stressed in a virtual briefing.
Monetary policy will remain “accommodative” to support economic recovery, according to the central bank, which kept the benchmark borrowing rate at two percent for the sixth consecutive policy meeting.(ABS-CBN News)
