Inflation or the rate of increase in the prices of goods and services is expected to accelerate in August, the Bangko Sentral ng Pilipinas (BSP) said Tuesday.
“The BSP projects August 2021 inflation to settle within the 4.1% to 4.9% range,” BSP Governor Benjamin Diokno said.
The latest central bank projection is faster than the 4.0% inflation rate recorded in July.
“Higher prices for LPG (liquefied petroleum gas), Meralco electricity, and key food items along with the depreciation of the peso are sources of upward price pressures during the month,” Diokno said.
Latest data from the Department of Energy showed household LPG prices in Metro Manila are estimated at P691 to P997 per 11-kilogram tank as oil firms increased prices by P3.27 to P3.35 per kilogram, effective August 1.
The Manila Electric Co. (Meralco), meanwhile, hiked its rates by 9.65 centavos per kilowatt-hour, bringing the overall household rate to P9.0036/kWh from July’s P8.9071/kWh.
The adjustment is expected to translate to an increase of around P19 in the total bill of residential customers consuming 200 kWh.
“These could be offset in part by the decline in domestic petroleum and rice prices,” Diokno said.
The BSP’s inflation projection came days before the Philippine Statistics Authority (PSA) reports the August inflation print on September 7, 2021.
“Moving forward, the BSP will continue to monitor emerging price developments to help ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” the central bank chief said.—AOL, GMA News