BSP sees October inflation to rise as fast as 8.1%

The country’s inflation rate could breach 8% in October, according to estimates by the Bangko Sentral ng Pilipinas (BSP).

In its month-ahead inflation forecast released Friday, the BSP said it projects this month’s inflation rate to settle within the 7.1% to 8.1% range.

The upper end of the forecast range is much faster than the inflation rate of 7.2% recorded in September.

“Upward price pressures are likely to come from higher prices of domestic fuel, electricity, and transport fares,” the central bank said.

The BSP, however, said pressures could be partially offset by lower prices of key agricultural commodities, such as rice, vegetables, meat, and fish, owing to favorable supply conditions.

“The BSP will remain vigilant and guided by incoming data, particularly on inflation and growth prospects. It will continue to assess the impact of the latest developments in the Middle East on the country’s inflation and economic outlook,” it said.

The Philippine Statistics Authority is scheduled to release official October inflation figures on November 5. —VAL, GMA News