MANILA - Inflation in August is expected to range from 5.9 to 6.7 percent, the Bangko Sentral ng Pilipinas said on Wednesday.
The BSP said inflation for the month was driven by the continued increase in key food prices, but could be offset in part by the decline in global oil prices, the reduction in electricity rates, lower meat and fish prices, and appreciation of the peso.
Inflation in July hit 6.4 percent, after hitting 6.1 percent in June and 5.4 percent in May as fuel and food prices continued to rise.
“Looking ahead, the BSP will continue to monitor closely emerging price developments to enable timely intervention that could prevent further broadening of price pressures, consistent with BSP’s mandate of price stability conducive to sustainable economic growth,” the central bank said.
The BSP has so far already raised its benchmark rate by 175 basis points in less than four months to 3.75 percent after keeping it at a record low of 2 percent in almost 2 years.