PRICE PRESSURES. Higher prices of rice and other agricultural products due to weather disturbances, increases in fuel prices and toll rates, and weakness of the peso against the US dollar are expected to result in an inflation rate of between 4.8 percent and 5.6 percent in August. The decline of power rates among major players is projected to provide downward price pressures during the month. (PNA file photo)
MANILA – Higher prices of rice and other agricultural products, upticks in fuel prices, train fares and toll rates, and peso depreciation are expected to bring the August inflation rate to between 4.8 percent and 5.6 percent.
In a statement on Thursday, the Bangko Sentral ng Pilipinas (BSP) said price pressures for the month are seen to be countered by the lower power rates among major providers.
“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” it said.
The inflation rate sustained its downward trend since hitting its 14-year high of 8.7 percent in January.
In July, the rate of price increases slowed to 4.7 percent from the previous month’s 5.4 percent.
The average inflation in the first seven months this year stood at 6.8 percent.
Monetary authorities forecast inflation to slow to within the government’s 2 percent to 4 percent target band starting in the last quarter of this year sans unexpected developments that will impact prices.
They even project inflation to go down below the target band in the first quarter of 2024. (PNA)
