Inflation to accelerate further in February

Inflation is expected to accelerate further in February due to higher utility rates, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

“The BSP Department of Economic Research projects the 2006-based February 2018 inflation to settle within the 4.0 to 4.8-percent range,” it said in an emailed statement.

Inflation settled at 4.0 percent in January, the fastest in over three years, supposedly driven by the first round effects of the tax reform program.

“Higher electricity rates and food prices, along with the full pass-through of higher excise taxes on petroleum products and sugar-sweetened beverages, could lead to upward price pressures for the month of February,” the BSP said.

Earlier this month, the Manila Electric Co. raised electricity rates by P1.08 per kilowatt-hour. —Jon Viktor Cabuenas/VDS, GMA News