Inflation seen to quicken to 3.7% in January —BSP

Inflation or the rate of increase of goods and services is seen to quicken further in January this year, driven by higher fuel and meat prices, according to Bangko Sentral ng Pilipinas (BSP).

In a text message to reporters, BSP Governor Benjamin Diokno said that the central bank expects inflation could settle at 3.7% this month.

It is within its forecast range of 3.3% to 4.1%.

The BSP’s projection is faster than the 3.5% inflation rate recorded in December last year.

“Higher prices for fuel and meat as well as increased Meralco power rates and excise taxes on alcoholic beverages and tobacco contributed to upward price pressures during the month,” Diokno said.

This month, consumers saw meat prices, particularly pork, to jack up as much as P400 per kilo in Metro Manila markets.

The Manila Electric Co., meanwhile, raised power rates in January by P0.2744 per kilowatt-hour (kWh) to P8.7497 per kWh. Such an increase is equivalent to additional P55 in the total bill of residential customers consuming 200 kWh.

Since the start of the year, price adjustments of fuel products stand at a net increase of P2.15 per liter for gasoline, P1.55 per liter for diesel, and P1.50 per liter for kerosene, data from the Department of Energy showed.

Diokno said upward inflation pressures could be partly offset by stable rice prices, lower prices of select fish and vegetables as well as the continued appreciation of the peso.

“Going forward, the BSP will remain watchful of economic and financial developments to ensure the delivery of its primary mandate of price stability conducive to a balanced and sustainable economic growth,” he said.

The Philippine Statistics Authority is scheduled to release the January 2021 inflation figures on February 5, 2021.—AOL, GMA News