BSP sees uptick in February inflation

The Bangko Sentral ng Pilipinas (BSP) sees inflation clocking in faster this month on higher power rates and oil prices.

 

February inflation may clock in ranging from 2.2 percent to 3 percent, BSP Governor Amando Tetangco Jr. told reporters in a text message.

 

Inflation eased further to 2.4 percent in January from 2.7 in December as oil prices in the world markets declined.

 

"Higher cost of power and water, as well as the recent recovery in oil prices, imply some upward inflation pressures," Tetangco said. "However, these could be partly offset by lower rice prices."

 

Earlier this month, the Manila Electric Company said electricity rates will increase by P0.84 kilowatt hour on higher charges and the added cost of renewable energy used under the Feed-In Tariff scheme.

 

Also, Philippine oil companies have raised pump prices for the third straight week this month, reflecting the rebound in crude in the international market.

 

Last month, the International Appeals Panel upheld the 9.8 percent increase in the 2013 average basic water rates of Maynilad Water Services Inc., which has yet to be implemented by the Metropolitan Waterworks and Sewerage System.

 

"Going forward, the BSP will continue to monitor developments here and abroad that could affect inflation in line with the BSP’s mandate of delivering price stability conducive to balanced and sustained economic growth," Tetangco said. – VS, GMA News