MANILA - The Bangko Sentral ng Pilipinas on Thursday said it expects inflation in December to settle within the range of 7.8 to 8.6 percent.
The BSP said higher electricity rates, an uptick in the prices of agricultural commodities, elevated prices of meat and fish products and LPG may push the inflation rate higher.
"Meanwhile, the reduction in petroleum and rice prices as well as the peso appreciation could contribute to easing price pressures for the month," the BSP said.
Inflation in November hit a 14-year high of 8 percent as food prices continued to rise.
November's inflation, which is also the highest since the 9.1 percent rate in November 2008, was within the central bank's forecast of 7.4 to 8.2 percent.
The average inflation for the year is now at 5.6 percent.
"The BSP continues to monitor closely emerging price developments to enable timely intervention that could help prevent the further broadening of price pressures, in accordance with the BSP’s price stability mandate," the central bank said.
During its last policy meeting for the year, the BSP raised its benchmark interest rate by another 50 basis points to a 14-year high of 5.5 percent to tame inflation.