September inflation likely within 6.6 to 7.4 percent: BSP think tank

ABS-CBN News

Posted at Sep 30 2022 02:35 PM

A vendor arranges her stock of salt at a store in Barangka St., in Mandaluyong city on Aug. 29, 2022. Jonathan L. Cellona, ABS-CBN News
A vendor arranges her stock of salt at a store in Barangka St., in Mandaluyong city on Aug. 29, 2022. Jonathan L. Cellona, ABS-CBN News

MANILA — Inflation in September likely settled within the 6.6 to 7.4 percent range, the Department of Economic Research of the Bangko Sentral ng Pilipinas said on Friday. 

The estimate is way above the 2 to 4 percent government target.

Inflation for the month is driven by the increase in electricity rates and prices of key food items, as well as the depreciation of the peso against the US dollar, the BSP said in a statement.

Lower local fuel and meat prices, meanwhile, could partially offset the upward pressures, it added.

"Looking ahead, the BSP will continue to monitor very closely emerging price developments to enable timely intervention to prevent the further broadening of price pressures, in accordance with the BSP’s price stability mandate," it said. 

Inflation slightly eased to 6.3 percent in August from 6.4 percent in July.

Inflation is projected to remain elevated and above-target with an average of 5.6 percent this year and 4.1 percent in 2023.

A 50-basis points interest rate hike was announced by the central bank in September to cool down inflation, which brought the country's benchmark policy rate to 4.25 percent.

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