Inflation expected to breach target anew in September, says BSP

Inflation is likely to have breached the government’s target range for the second straight month this September, according to the latest forecasts of the Bangko Sentral ng Pilipinas (BSP).

At a virtual briefing on Thursday, BSP Governor Benjamin Diokno said inflation is predicted to settle within 4.9% to 5.6%, which would follow the 4.9% recorded in August.

Should this be realized, this would be the second straight month that inflation breaches the central bank’s target range of 2% to 4%.

Inflation would also be above the target range for seven out of the eight months so far this year, with the only month in line with the target being July when the print was at 4.0%.

“Inflation will be driven by upward adjustments in domestic oil prices, electricity rates, suggested retail prices of basic necessities and prime commodities, and prices of selected fruits and vegetables as well as rice,” Diokno said Thursday.

Pump prices of petroleum products were hiked in the four weeks of the month, the Manila Electric Co. increased power rates for September, and pork prices remain elevated.

“These could be partially offset by the decline in meat prices along with the slight appreciation of the peso during the month,” Diokno said.

“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,” he added. — RSJ, GMA News