Metro Manila (CNN Philippines, October 31) — The country’s central bank expects inflation to surge again in October amid the continued rise in fuel and agricultural prices and the weakening of the peso.
In a statement on Monday, the Bangko Sentral ng Pilipinas (BSP) said it projects inflation to settle between 7.1% to 7.9%.
The forecast range is way faster than September’s 6.9%, the country’s highest rate in four years.
READ: Inflation rises to 4-year high at 6.9% in September as food, energy costs surge
“Inflation pressures for the month are expected to emanate from transport fare hikes, elevated domestic petroleum prices, higher agricultural commodity prices due to recent typhoons, and the depreciation of the peso,” it said.
But the BSP said consumers might have received slight relief from lower electricity rates for Meralco’s franchise areas and reduced LPG and fish prices.
The central bank also said general price levels may cool “in the succeeding months.”
“Inflation is projected to gradually decelerate in the succeeding months as the cost-push shocks to inflation due to weather disturbances and transport fare adjustments dissipate,” the BSP said.
President Ferdinand “Bongbong” Marcos Jr. earlier said the government would continue to raise interest rates to tame rising inflation and defend the peso from further depreciation.
He said fighting inflation was the administration’s “number one priority.”
“We may have to defend the peso in the coming months, but the overall forecast is that we are still doing better than other countries in terms of inflation, though economic developments are still anticipated,” Marcos said at that time.
