August inflation seen slower at 3.2%-4% —BSP

Inflation is expected to move at a slower pace in August amid lower prices of petroleum and other agricultural products observed during the period, the Bangko Sentral ng Pilipinas (BSP) said Friday.

The BSP said it projects this month’s inflation—the rate of increase in the prices of goods and services—to “settle within the range of 3.2% to 4%.”

Inflation stood at 4.4% in July. 

The BSP said that higher electricity rates and higher prices for agricultural commodities, owing to unfavorable weather conditions, are the primary sources of upward price pressures for the month. 

However, these factors are “expected to be offset by lower domestic oil prices as well as lower rice, fish, and meat prices along with the peso appreciation,'' it said.

“Going forward, the Monetary Board will continue to take a measured approach to ensuring price stability conducive to balanced and sustainable growth of the economy and employment,” the BSP said. 

The Philippine Statistics Authority is scheduled to release the official inflation data for August on September 5. — VBL, GMA Integrated News