The Bangko Sentral ng Pilipinas (BSP) forecasts inflation to stay between 1.8 percent to 2.6 percent this month.
In a Viber message to journalists Wednesday, BSP Governor Benjamin Diokno said the forecast range takes into account the lower prices of rice, oil, electricity rates in areas being serviced by the Manila Electric Company (Meralco), and the continued appreciation of the peso.
Diokno said these factors, however, are seen to be countered by the slightly higher price of liquefied petroleum gas (LPG).
“Moving forward, the BSP remains watchful of economic and financial developments, and stands ready to take necessary policy actions to ensure the delivery of its primary mandate of price stability conducive to a balanced and sustainable economic growth,” he said.
The rate of price increases slowed to 2.4 percent last August after a two-month rise, with the July 2020 figure at 2.7 percent.
The average inflation to date stood at 2.5 percent, at the lower half of the government’s 2 to 4-percent target band until 2022.
BSP forecasts inflation to average 2.6 percent this year, 3 percent in 2021, and at 3.1 percent in 2022.
Source: Philippines News Agency