Philippine monetary officials have forecast inflation rate for August to stay between 2.5 percent and 3.3 percent in line with their within-target inflation rate projection until 2022.
In a Viber message to journalists yesterday, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said upside risks to inflation are the hikes in the domestic prices of gasoline and liquefied petroleum gas (LPG).
However, these are expected to be countered partly by the drop in power rates in areas being serviced by the Manila Electric Company, the continued appreciation of the peso against the US dollar, and stable food prices.
“Moving forward, the BSP will continue to monitor (the) emergency price mandate of price stability conducive to balanced and sustained economic growth is achieved,” he added.
Domestic price increases rose from 2.1 percent in May to 2.5 percent in June and 2.7 percent in July.
However, average inflation in the first seven months of the year stood at 2.5 percent, at the lower half of the government’s 2 percent to 4 percent target band from 2020 to 2022.
The central bank’s average inflation forecast for this year is 2.6 percent, and 3 percent and 3.1 percent for 2021 and 2022, respectively.*PNA