MANILA - Inflation for the month of March likely settled within the 4.2 percent to 5 percent range, the Bangko Sentral ng Pilipinas said Wednesday.
Downward adjustments in Meralco rates, lower prices of key food items and the price cap on meat products are "the main sources of downside price pressures" for the month, the BSP said in a statement.
However, these factors can be offset by higher oil prices and peso depreciation, it said.
Inflation rose to 4.7 percent in February as prices of meat products continued to spike due to supply shortage.
"Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate," the central bank said.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno earlier said inflation could remain elevated in the next few months and would probably breach the upper end of the government target of 2 to 4 percent.
Inflation forecast for 2021 is at 4.2 percent and 2.8 percent for 2022, the BSP earlier said.
-- with a report from Michelle Ong, ABS-CBN News
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