BSP expects inflation to quicken in February

Inflation or the rate of increase in the prices of commodities is seen to spill above the government’s target range of 2% to 4% in February on the back of higher fuel and fish prices, the Bangko Sentral ng Pilipinas (BSP) said Friday.

In a message to reporters, BSP Governor Benjamin Diokno said the central bank expects inflation this month could settle at 4.7%, within its forecast range of 4.3% to 5.1%.

The BSP’s projection is faster than the  4.2% inflation rate recorded in January. 

“Upward price pressure for the month emanated from the continued uptick in global crude oil prices and elevated fish prices,” Diokno said.

“Meanwhile, the implementation of the temporary price caps on meat products for NCR, stable rice prices, and lower power rates in Meralco-serviced areas contributed to the downward price pressures during the month,” he added.

Last month, consumers saw meat prices, particularly pork, jack up as much as P400 per kilo in Metro Manila markets.

To address the issue, President Rodrigo Duterte ordered the price ceiling imposed in Metro Manila for 60 days starting Monday upon the recommendation of the Department of Agriculture.

The price ceiling is P300 per kilo for liempo, P270 per kilo for kasim and pigue, and P160 per kilo for dressed chicken.

The Manila Electric Co., meanwhile, slashed overall rates for a typical household decreased by 7.04 centavos per kilowatt-hour (/kWh) in February to P8.6793/kWh from P8.7497 in January. 

This is equivalent to a decrease of around P14 in the total bill of residential customers consuming 200kWh, P21 for 300kWh, P28 for 400kWh, and P35 for 500kWh.

“Looking ahead, the BSP stands ready to take necessary policy actions to ensure the delivery of its primary mandate of price stability conductive to a balanced and sustainable economic  growth,” Diokno said.

The Philippine Statistics Authority is scheduled to release inflation figures for February on March 5, 2021.—LDF, GMA News