BSP sees inflation reaching its peak in September

The rate in the hike of the prices of goods and services (inflation) is seen to reach its speak in September before slowing down in the last quarter of the year, a top official of the Bangko Sentral ng Pilipinas said Wednesday.

"Sa aming pagtataya, itong September ang pinaka-peak tapos we will start to see lower inflation down the road," BSP Deputy Governor Diwa Guinigundo said in a news forum in Quezon City.

Inflation clocked in at 6.4 percent in August, the fastest in over nine years since the 6.6 percent in March 2009. 

The central bank earlier said that inflation will hit its highest level during the July to September period. 

"Inaasahan po natin na ang inflation ay mag peak na nitong third quarter... so kung nag 6.4 percent noong Agosto, dalawa lang ang pwede mangyari nag-peak na noong Agosto o magpi-peak pa ng Setyembre," Guinigundo said.

"Anything is possible pwede na sa Setyembre ay maaring pa ring manatiling mataas ang inflation," the BSP official said.

Early this month, Typhoon Ompong hit the northern Luzon area, and so far caused P16.76-billion in damage to the agriculture sector. 

The damage to agriculture in the wake of the typhoon is expected to disrupt food supply and cause prices to jack up.

Guinigundo, however, said the inflationary impact of Ompong would be "sporadic" or limited to areas directly hit by the typhoon.

Also, he said that inflation will start to slow down after its peak this month due to the mitigating measures of the government.

Last week, the economic managers recommended that President Rodrigo Duterte sign an executive order removing administrative constraints and non-tariff barriers on imported rice, fish, vegetables, sugar, and meat. 

This includes specific reforms to address food inflation, one of the top reasons for the 6.4-percent inflation in August. —LBG, GMA News