BSP Governor Benjamin Diokno (File photo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) forecasts a faster inflation rate for February at 3.2 percent, mainly driven by the increases in prices of oil, rice, and some meat products.
The projection is higher than the previous month’s 3 percent and is the midpoint of the central bank’s 2.3 percent to 3.6 percent forecast range for the month.
“The series of oil price hikes, along with the higher price of rice and meat, are the primary sources of inflationary pressures in February,” BSP Governor Benjamin Diokno told journalists in a Viber message on Monday.
The upside risks to the inflation rate this month are expected to be countered by lower electricity rates in areas being serviced by the Manila Electric Company (Meralco) and the decline in the prices of fish and vegetables as supply improves, he said.
“Looking ahead, the BSP will continue to monitor emerging price developments and possible second-round effects to achieve its primary mandate of price stability that is conducive to balanced and sustainable economic growth of the economy,” he added.
BSP’s policy-making Monetary Board (MB) recently hiked the central bank’s average inflation rate projection for this year from 3.4 percent to 3.7 percent due to the continued hike in global oil prices and its impact on food prices.
Amidst the change, monetary authorities said the projection remains within the government’s 2 to 4-percent target band for this year. (PNA)
