Oil, food prices, weak peso to boost PHL inflation

Inflation this month may accelerate up to 3.1 percent, fueled by higher oil and food prices and a weaker peso against the US dollar, Bangko Sentral ng Pilipinas Gov. Amando Tetangco Jr. said Friday. Inflation eased to 2.7 percent last February, the slowest in 29 months.     “Inflation could be higher than February’s rate of 2.7 percent if the impact of higher international prices, the weak peso, and increases in the prices of certain food items were not fully offset by lower utility rates and lower prices of some vegetables,” Tetangco said in a text message to reporters.   “We are mindful how these could reflect in the path of inflation over the policy horizon, the assessment of which will be the principal consideration in setting policy moving forward,” he added.   While inflation may stay within the 3-percent to 5-percent range this year and in 2013 as government planners expected, the second-round impact of higher oil prices can bring inflation beyond those parameters, the central bank chief noted.   As of now, there seems to be no need for a change in monetary policy.   “Our latest assessment is that our policy stance remains appropriate,” Tetangco said.   In coming up with its inflation forecast for this year and 2012, the BSP used $90 to $110 per barrel of Dubai crude, the benchmark for pricing Persian Gulf oil for Asia.   Dubai crude averaged $116.16 per barrel in February, from $109.54 in January. — VS, GMA News