MANILA — Upward pressure from higher oil and rice prices are seen to bring the August 2017 inflation rate in the Philippines to between 2.6 percent and 3.4 percent.
Rate of price increases last July rose to 2.8 percent from month-ago’s 2.7 percent, bringing the average to date to 3.1 percent.
In a statement Thursday, the Bangko Sentral ng Pilipinas (BSP) said its Department of Economic Research (DER) sees increases in power rates in areas being serviced by the Manila Electric Company (Meralco) as well as depreciation of the peso during the month as additional factors that may push inflation for the month higher.
“Moving forward, the BSP will continue to assess domestic and external factors that affect the balance of risks surrounding the inflation outlook in line with its mandate of delivering price stability conducive to a balanced and sustained economic growth,” it added.
The BSP eyes inflation to average at 3.2 percent this year, with the peak seen in the third quarter of the year.
Impact of rice prices on inflation is seen to have lesser contribution in the last quarter of the year as supply normally recovers after the rainy season and because of ample importation by the goverment. (PNA)