MANILA - The Philippine central bank said it is ready to implement necessary policy actions as it forecast annual inflation in August to be between 4.7-5.5 percent.
Bangko Sentral ng Pilipinas Governor Amando Tetangco said the forecast reflects higher food and power prices. But lower pump prices of oil could partly offset the increases.
"The BSP stands ready to implement necessary policy actions to ensure that inflation expectations remain well-anchored and limit any potential build-up of second round effects of current price pressures," Tetangco said in a mobile text message to reporters on Thursday.
The top end of the forecast would be the highest since April 2009, when the annual inflation rate hit 5.6 percent. It is also outside the central bank's 3-5 percent inflation target this year.
Some economists expect the central bank to follow up on July's rate hike - the first in three years - as early as next month to stay on top of rising prices. The central bank meets next on Sept. 11 to review policy.