The Bangko Sentral ng Pilipinas on Monday said it expects inflation in October within the range of 3.2-3.7 percent to possibly hit an almost three-year high.
Citing the projection of its Department of Economic Research, the BSP attributed the higher forecast range for this month partly to “increases in domestic petroleum prices, electricity rates in Meralco-serviced areas, and water rates in Maynilad- and Manila Water-serviced areas.”
Also, “the weaker peso could contribute to upward price pressures for the month,” the BSP said in a statement. The peso hit fresh 11-year low levels in October.
A check with Philippine Statistics Authority data showed that at 3.7 percent or the higher end of the October forecast, headline inflation will be the fastest since November 2014’s similar 3.7 percent.
The forecast range for October was above the BSP’s projection of between 2.8 percent and 3.6 percent for September.
The actual rate of increase in prices of basic goods in September peaked to a five-month high of 3.4 percent, bringing the nine-month average to 3.1 percent.
The government had mostly blamed the September inflation figure to higher food prices due to weather disturbances that month.
Moving forward, “average inflation is expected to remain within the national government’s target range of 2-4 percent for the year,” the BSP said. /je