THE Bangko Sentral ng Pilipinas (BSP) expects consumer price growth in September to ease, projecting inflation to land between 1.5 percent and 2.3 percent, well below its two to four percent annual target range.
Upward price pressures were largely driven by higher costs of rice, fish and domestic fuel, the central bank said Tuesday. These, however, are expected to be tempered by declines in vegetable and meat prices as well as lower electricity rates, keeping overall inflation subdued.
The forecast marks another month of easing price growth after inflation spiked earlier this year on the back of global supply chain disruptions and weather-related crop losses. Softer readings may strengthen the case for the BSP to maintain its current policy stance as it balances inflation management with supporting economic growth.
“Going forward, the BSP will continue to monitor domestic and international developments affecting the inflation and growth outlook, consistent with its data-dependent approach to monetary policy,” the central bank said. / KOC