BSP projects Feb inflation at 3.7-4.5%
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 28 Feb 2019 16:20:48 +0000
INFLATION is likely to have slowed to as low as 3.7 percent or marginally risen to 4.5 percent last month, according to the latest forecast of the Bangko Sentral ng Pilipinas (BSP).
In a statement on Thursday, the central bank said its Department of Economic Research projected the rate of the increase in the prices of goods and services in February “to settle within the 3.7-to-4.5-percent range.”
The country’s headline inflation eased to a 10-month low of 4.4 percent in January from 5.1 percent in December.
The Philippine Statistics Authority is set to release official February inflation data on March 5.
“Higher domestic oil prices and the upward adjustment in electricity rates provided upside price pressures to inflation during the month,” the BSP said.
According to the Energy department, most of the oil companies implemented a price increase of P1.45 per liter for gasoline and diesel, effective on February 26. For kerosene, the price rose increased by P1.35 per liter.
Manila Electric Co.’s per kilowatt-hour (kWh) rate for households consuming 200 kWh monthly was raised by P0.5682.
These upward pressures “may be partly offset by lower prices of rice and other agricultural commodities, given the appreciation of the peso and ample supply, particularly of rice, following the recent harvest and arrival of rice imports,” the Bangko Sentral said.
“Looking ahead, the BSP will continue to be watchful of evolving price trends to ensure that the monetary policy stance remains appropriate to maintaining price stability that is conducive to a balanced and sustainable growth of the economy and employment,” it added.
Rising inflation prompted the central bank’s policy-making Monetary Board to raise key interest rates five consecutive times beginning last May.
Monetary authorities expect consumer price growth to return to the 2.0-4.0 percent target range this year, and analysts have said policy rates could be kept unchanged for now, even possibly for the rest of the year.
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