BSP sees inflation rising to 4.8%-5.6% in August

Inflation is seen to snap its six-month deceleration streak this month amid higher rice prices and transportation costs, according to the latest projection by the Bangko Sentral Sentral ng Pilipinas (BSP).

In its forecast released Thursday, the BSP said inflation—which measures the rate of increase in consumer goods and services costs—could settle within the range of 4.8% to 5.6%.

The lower end of the forecast range is higher than the 4.7% inflation rate seen in July. 

If the actual inflation print falls within the BSP’s projection, it could spell the end of inflation’s downward trend seen in the past six months.

The Philippine Statistics Authority is scheduled to release the official inflation figures for the month of August on September 5.

"Higher prices of rice and other agricultural commodities due to weather disturbances, a sharp rise in fuel prices, increased transport costs owing to higher train fares and toll rates, and the peso's depreciation are the primary sources of upward price pressures in August," the BSP said.

"Meanwhile, lower electricity rates from major providers could contribute to downward price pressures for the month," it added.

Moving forward, the central bank said it will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation. — VBL, GMA Integrated News