August inflation likely within 2.5 to 3.3 percent range: BSP think tank

ABS-CBN News

Posted at Aug 28 2020 02:41 PM

Dry goods go for sale in makeshift stands in Manila on January 4, 2019. Mark Demayo, ABS-CBN News

MANILA - Inflation in August will likely settle within the 2.5 to 3.3 percent range, the Bangko Sentral ng Pilipinas' Department of Economic Research said on Friday.

Higher prices of gasoline and liquified petroleum gas (LPG) will put upward pressure on inflation, but will be offset by lower MERALCO power rates, a stronger peso and stable food prices, it said in a statement.

"Moving forward, the BSP will continue to monitor emerging price developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,"
BSP DER said.

Inflation quickened in July, its fastest pace in 6 months due to rising transport costs.

The consumer price index rose 2.7 percent in July, within the BSP's estimated range of 2.2 to 3 percent.

Core inflation, which strips out volatile food and fuel items, was at 3.3 percent.