MANILA - Inflation in August likely ranged from 2.6 to 3.4 percent on the back of higher pump prices, electricity rates and the continued weakening of the peso, the Bangko Sentral ng Pilipinas said Thursday.
The BSP also said credit growth as well as the increase in domestic liquidity could push inflation higher in August.
Inflation inched up to 2.8 percent in July from a revised 2.7 percent in June. This brought average inflation in the first seven months of the year to 3.1 percent, well within the BSP's target range of 2 to 4 percent.
"Moving forward, the BSP will continue to assess domestic and external factors that affect the balance of risks surrounding the inflation outlook in line with its mandate of delivering price stability conducive to a balanced and sustained economic growth," the BSP said.
BSP Deputy Governor Diwa Guinigundo earlier said inflation could have already peaked this year after hitting 3.4 percent in March and April.