Inflation likely settled at 5.9 percent in August, the Bangko Sentral ng Pilipinas said on Friday, citing a range of 5.5 to 6.2 percent.
“Higher prices of rice and key food items due to weather disturbances and supply disruptions, an increase in gasoline and LPG prices, and a slight upward adjustment in electricity rates in Meralco-serviced areas contributed to upward price pressures in August,” the BSP’s Department of Economic Research, said in a statement.
However, lower diesel and kerosene prices as well as a modest appreciation of the peso could partly temper price pressures, according to the central bank.
Consumer prices rose by 5.7 percent in July, reflecting the fastest inflation rate in at least five years, the statistics office said earlier this August.
“The uptrend was mainly due to the 7.1-percent annual rate recorded in food and non-alcoholic beverages index,” the statistics office noted.
The BSP said it will remain watchful of economic and financial developments that could affect the inflation outlook and will closely monitor inflation expectations and emergence of further second-round effects ahead of the September 2018 Monetary Board policy meeting.
The statistics office is scheduled to release the consumer price index and headline core inflation report on Wednesday, September 5, 2018. —VDS, GMA News