Inflation could hit 6.1% in Sept – BSP
INFLATION may stay steady in September or rise to as high as 6.1 percent, the Bangko Sentral ng Pilipinas (BSP) said on Friday, due to factors such as a weaker peso and higher fuel, electricity and key farm goods prices.
It forecast a result in the 5.3- to 6.1-percent range, which spans August's outturn and the level last seen in May.
«Higher prices of fuel, electricity and key agricultural commodities, as well as the peso depreciation, are the primary sources of upward price pressures in September,» the central bank said in a statement.
«Meanwhile, lower rice and meat prices could contribute to downward price pressures for the month,» it added.
September inflation data will be released by the Philippine Statistics Authority on Thursday, October 5.
The rate had fallen for six straight months after hitting a 14-year high of 8.7 percent in January. The run to as low as 4.7 percent in July was snapped the following month due to a sharp increase in food and transport costs.
«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,» the central bank said.
The BSP kept key interest rates steady last week but officials indicated the possibility of a rate hike in November due to rising inflationary risks.
Last year, surging inflation prompted the central bank's policymaking Monetary Board to raise key interest rates by a total of 425 basis points (bps).
It last ordered a 25-bps hike in March, which brought the BSP's policy rate to a 16-year high of 6.25 percent.
A pause followed during the next meeting in May and monetary authorities again decided to keep key rates unchanged in June, August and September.
Inflation forecasts were also reduced, but rising price pressures led to upward revisions beginning August. As of last week, inflation is now expected to average 5.8 percent this year, up from 5.6 percent previously.
The outlook for next year was also adjusted to 3.5 percent from 3.3 percent while the 2025 projection was kept at 3.4 percent.
«Latest BSP baseline projections show a slightly higher inflation path,» the central bank said last week.
«Nonethele
