August inflation may rise on Typhoon Gener’s impact on food prices

Food prices may accelerate this month and influence inflation as a result of Typhoon Gener’s impact on food production, The Bangko Sentral ng Pilipinas said Friday.   The central bank is coordinating with the Department of Agriculture on the damage caused by Typhoon Gener on farms, said BSP Governor Amando Tetangco Jr.   “We have to wait for the assessment of the Department of Agriculture on food production, the central bank chief said. “If there will be an impact on inflation, it will be on prices of food items,” he added.   Tetangco noted the impact of food prices on overall inflation for the year would be minimal because oil prices are softening in the world market.    “… [O]verall inflation is affected by a number of factors. It must be noted that oil prices have eased and global demand may be weak,” Tetangco said.   Food inflation was at 2 percent in June, with headline inflation at 2.8 percent.   Fiscal and monetary authorities are working on the assumption that inflation would settle between 3 and 5 percent for the whole of 2012. — VS, GMA News