BSP expects August inflation to reach 1.8%

The Bangko Sentral ng Pilipinas (BSP) is projecting that August’s inflation rate will be faster due to higher food costs arising from adverse weather conditions during the month.

In its forecast, the BSP said it expects the inflation rate to settle within the range of 1% to 1.8%.

The central bank’s forecast range would be an acceleration from the 0.9% seen in July.

“Upward price pressures for the month are likely to arise from higher costs of fruits, vegetables, and fish due to unfavorable weather conditions. Higher electricity rates, elevated domestic fuel costs, and the depreciation of the peso likewise contribute to upside price pressures,” the BSP said.

“These could be partially offset by the continued decline in rice prices and lower meat costs,” it added.

The BSP said it would continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making. —VBL, GMA Integrated News