Metro Manila (CNN Philippines, March 31) — Inflation, or the rate at which prices of goods increase, is seen to accelerate in March, the Bangko Sentral ng Pilipinas said.
In a statement on Wednesday, BSP Governor Benjamin Diokno said inflation is expected to be 3.7% and will settle within the 3.3% to 4.1% range. The latest projection is faster than February’s 3%, which was still within the government’s target range of 2% to 4% for the year.
“The continued oil price hikes along with high electricity rates in Meralco-serviced areas, higher meat prices, and the peso depreciation are the primary sources of inflationary pressures during the month,” Diokno said, noting these could be partly offset by lower Maynilad and Manila Water rates, as well as decrease in costs of rice, fish and vegetables amid easing supply constraints.
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“Looking ahead, the BSP will continue to monitor emerging price developments and possible second-round effects to help achieve its primary mandate of price stability that is conducive to balanced and sustainable economic growth of the economy,” he added.
For 2022, BSP sees inflation to average 4.2% due to higher projected cost of fuel amid the ongoing Russia-Ukraine conflict.
