DOF sees higher food inflation in September

ABS-CBN News

Posted at Sep 28 2018 03:48 PM | Updated as of Sep 28 2018 04:41 PM

People buy rice at a residential street market in Manila, February 7, 2018. Jonathan Cellona, ABS-CBN News


MANILA - The Department of Finance on Friday released its inflation forecast for the month of September expecting a headline rate of 6.38 percent.

Food inflation outlook, however, is at 9.28 percent from 8.48 percent in August, according to DOF's economic bulletin on inflation outlook for September 2018.

Rice inflation, the main driver of food inflation, is seen to reach 10 percent in September, according to DOF's September outlook. 

Rice inflation accelerated to 7.1 percent last August while the headline rate hurtled past forecasts to 6.4 percent the same month, government data showed. 

The Bangko Sentral ng Pilipinas (BSP) raised its benchmark borrowing rates by 50 basis points on Thursday in a bid to curb the rising prices.

The DOF said BSP's "strong monetary action" and the President Rodrigo Duterte's administrative measure to remove non-tariff barriers on major food items "will moderate" food prices in the short run, the report said. 

-- with a report by Warren de Guzman, ABS-CBN News