MANILA – The Bangko Sentral ng Pilipinas on Thursday raised its inflation forecast for 2018 to 5.2 percent from 4.9 percent.
Inflation outlook for 2019 was also revised to 4.3 percent from 3.7 percent, citing the higher than expected inflation in August, the effects of typhoon Ompong and the slower gross domestic product (GDP) growth for the first half of 2018, BSP Assistant Governor Francisco Dakila said in a press briefing.
Despite the revision, Dakila said, rising prices would taper off next year and settle within the government’s target of 2 to 4 percent.
“If rice tariffication pushes through in 2018 that could push inflation rate back to within target range,” Dakila said.
Earlier Wednesday, the Asian Development Bank lowered its economic growth outlook for the Philippines as the gross domestic product (GDP) growth "softened unexpectedly" in the first half of the year.
The ADB revised its Philippine growth forecast to 6.4 percent from 6.8 percent for 2018 and 6.7 percent from 6.9 percent in 2019 reflecting moderation in agriculture output, exports, weakening peso and high inflation rate.
-- with a report by Warren de Guzman