BSP eyes March inflation between 4.2-5%

MANILA – The Bangko Sentral ng Pilipinas (BSP) forecasts inflation in March to range between 4.2 to 5 percent, with the point inflation seen at 4.6 percent.

The projected point inflation for the month is lower than the 4.7 percent rate of price increases last February.

In a Viber message to journalists Wednesday, BSP Governor Benjamin Diokno said among the factors for this month’s inflation projection are lower power rates in areas being serviced by the Manila Electric Company (Meralco), and “lower prices of key food items due to supply conditions and the continued implementation of price caps on meat products.”

He, however, cited the rise in oil prices and the weakening of the peso as offsetting factors.

“Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” he added.

Inflation has been on the rise since the last quarter of 2020 due to supply constraints on several food items like meat, which is caused by the African swine fever (ASF) and the spike in global oil prices.

Monetary authorities project the elevated inflation to last until the third quarter of this year.