Metro Manila (CNN Philippines, December 29) — The country’s central bank expects inflation to remain hotter in December amid soaring prices of power and agricultural products.

In a statement on Thursday, the Bangko Sentral ng Pilipinas (BSP) said inflation might settle within the range of 7.8% to 8.6%.

If the inflation rate hits the upper end of the forecast range, it would be way faster than November’s 8%, which was already a record high in 14 years.

“Upward price pressures for the month are expected to emanate from higher electricity rates, uptick in the prices of agricultural commodities, elevated meat and fish products, and higher LPG prices,” the BSP said.

But it also noted that the slash in prices of petroleum and rice, including the strengthening of the Philippine peso, witnessed in December might ease price pressures.

BSP Governor Felipe Medalla earlier said inflation may return to the government’s target range by the second half of 2023 and even approach the low end of the band by the last quarter.

The central bank has been shadowing the US Federal Reserve’s approach in the fight against soaring inflation through interest rate hikes.

READ: BSP announces another rate hike to cool inflation