Inflation within target despite pick up in August: gov't

ABS-CBN News

Posted at Sep 05 2017 03:33 PM | Updated as of Sep 05 2017 03:36 PM

MANILA - The rise in consumer prices is manageable even as the uptick in August exceeded expectations, economic managers said Tuesday.

While inflation of 3.1 percent last month was faster than economists' forecasts, it would likely settle at the midpoint of the Bangko Sentral ng Pilipinas' 2 to 4 percent target for this year until 2019, said BSP Gov. Nestor Espenilla Jr.

"The within-target path of inflation over the policy horizon provides the BSP with the flexibility to assess our monetary tools to enhance further our responsiveness to the evolving requirements of the economy," Espenilla said in a statement. 

Socioeconomic Planning Secretary Ernesto Pernia said despite two consecutive months of accelerating inflation, the rise was "well within" target. 

"Nonetheless, we should continue to closely monitor upside and downside risks," Pernia said.

Rising fuel prices, aggravated by higher import costs due to the weak peso, may push pump and electricity prices higher.