Inflation downtrend may have ended in August, says BSP

MANILA  -The rate of increase in the prices of goods and services commonly purchased by households may have revved back up to somewhere in the range of 4.8 percent to 5.6 percent in August, from 4.7 percent in July, according to the Bangko Sentral ng Pilipinas.

The Philippine Statistics Authority will announce the official readout by Sept. 4.

“Higher prices of rice and other agricultural commodities due to weather disturbances, sharp rise in fuel prices as well as increased transport costs owing to higher train fares and toll rates, and the peso depreciation are the primary sources of upward price pressures in August,” the BSP said in a statement.

“Meanwhile, lower electricity rates from major providers could contribute to downward price pressures for the month,” the central bank added.

Headline inflation was on a downtrend for six months in a row since reaching 8.7 percent in January.
The BSP’s goal is to keep inflation at a full-year average of within the range of 2 percent to 4 percent.