Higher inflation seen in October

Customers buy vegetables in a Manila market in this file photo. Consumer prices rose at a faster pace in October due to the effects of Typhoon “Santi” on the country’s major agriculture producers, the Bangko Sentral ng Pilipinas said. AFP FILE PHOTO

MANILA, Philippines—Consumer prices rose at a faster pace in October due to the effects of Typhoon “Santi” on the country’s major agriculture producers, the Bangko Sentral ng Pilipinas (BSP) said.

The BSP said inflation may have accelerated 2.8 to 3.6 percent in October over the same month last year. This was higher than the 2.7-percent inflation recorded in September.

Inflation, or the rise in prices of various commodities such as food and fuel, has averaged 2.8 percent so far this year.

The National Statistics Office is expected to release the official inflation data next week.

BSP Governor Amando M. Tetangco Jr. said the prices of rice and locally grown vegetables went up in October due to supply issues following Santi, which caused flooding in northern and Central Luzon.

Despite the higher fuel prices in October, the BSP said average inflation for the year would still likely fall near the low end of the central bank’s 3- to 5-percent target range.

“This remains consistent with a within target inflation rate for 2013,” Tetangco told reporters on Sunday.

The BSP uses inflation as the main economic indicator for crafting its monetary policy, which influences interest rates and the amount of money circulating in the economy.

The central bank last week said that inflation would likely average 3 percent this year, before accelerating to 4 percent in 2014.

“Going forward, the BSP will continue to closely monitor the factors that affect movements in prices in line with the BSP’s primary mandate of delivering price stability conducive to balanced and sustainable economic growth,” Tetangco said.—Paolo G. Montecillo

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