BSP: August inflation to settle within 2.5-3.3% range

The Bangko Sentral ng Pilipinas (BSP) is expecting inflation to accelerate further in August due to rise in domestic fuel prices.

“The BSP Department of Economic Research projects August 2020 inflation to settle within the 2.5% to 3.3% range,” BSP Governor Benjamin Diokno said.

The upper end of the forecast range is higher than than the inflation figures recorded in July at 2.7%.

“Higher domestic prices of gasoline and LPG (liquefied petroleum gas) provide upward price pressure during the month,’ Diokno said.

The upward price pressures, however, could be offset partly by the continued decline in Manila Electric Co. (Meralco) power rates and the sustained appreciation of the peso along with broadly stable food prices.

This month, Meralco slashed power rates by 20.55 centavos per kilowatt-hour to P8.4911/kWh this month, which the company said is the lowest since September 2017.

This is equivalent to a reduction of around P41 in the total bill of residential customers consuming 200 kWh.

“Moving forward, the BSP will continue to monitor emerging price developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” Diokno said.—AOL, GMA News