INFLATION in August is likely to remain elevated, with higher prices of key food items and domestic fuel expected to drive upward price pressures, the Bangko Sentral ng Pilipinas (BSP) said.
The central bank projected headline inflation for the month to settle within the 5.5 percent to 6.5 percent range.
It said higher prices of rice, vegetables, fruits and fish could push inflation higher, partly due to unfavorable weather conditions. Elevated domestic fuel costs are also expected to add to price pressures.
These could be partly offset by lower meat prices, reduced electricity rates and the appreciation of the peso, the BSP said.
The central bank said it would continue to monitor incoming data, particularly developments in inflation and economic growth, as it assesses the outlook for monetary policy.
It will also evaluate the potential impact of recent developments in the Middle East and weather disturbances on inflation and economic activity, the BSP said. / KOC