MANILA – Higher prices of domestic oil products and rice are seen as factors to the possible uptick of Philippines’ rate of price increases in September 2017 to between 2.8-3.6 percent.
In a statement Friday, the Bangko Sentral ng Pilipinas’ (BSP) Department of Economic Research (DER) said the higher electricity rate in areas being serviced by the Manila Electric Company (Meralco) and weakness of the peso against the US dollar were also “seen to contribute to upward price pressures for the month.”
“Nonetheless, the Staff’s assessment indicates that average inflation for 2017 will remain within the government’s inflation target of 3.0 percent +/- 1.0 percentage point,” it added.
Inflation in August rose to 3.1 percent from month-ago’s 2.8 percent due to faster increases in several indices such as alcoholic beverages and tobacco; housing, water, electricity, gas and other fuels, and transport among others.
In the first eight months this year, inflation averaged at 3.1 percent, slightly above the government’s two to four percent target for the year.
The central bank’s average inflation forecast this year is 3.2 percent.