THE Bangko Sentral ng Pilipinas (BSP) expects headline inflation to accelerate to 6.4 percent 7.4 percent in September, driven mainly by higher food and fuel prices and the peso’s depreciation.
In its month-ahead inflation forecast, the central bank said upward price pressures were likely to come from higher prices of vegetables, fish, rice and fruits, partly due to weather-related disruptions.
Higher domestic petroleum prices and the weaker peso were also expected to contribute to the increase in inflation, the BSP said.
These pressures could be partly tempered by lower meat prices and electricity rates, it added.
The projected inflation range is above the 6.1 percent recorded in August, underscoring continued price pressures that could weigh on household purchasing power and business costs.
The BSP said it would continue to monitor developments affecting the inflation outlook, including commodity prices, exchange-rate movements, weather conditions and geopolitical developments. / KOC