August inflation projected to settle at 3.2% to 4%, BSP says
MANILA, Philippines — The Banko Sentral of Pilipinas (BSP) on Friday, August 30 said that inflation is projected to be around 3.2% to 4% for August.
President Ferdinand Marcos Jr.’s target range for inflation is 2% to 4%.
“The BSP projects August 2024 inflation to settle within the range of 3.2 to 4.0%. 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,” the BSP said in a statement.
However, the BSP said that the higher energy rates will be offset by the lower domestic oil prices.
The BSP also projected lower inflation rates for rice, fish, and meat. Peso appreciation will also factor in.
July inflation surged past the government’s target, settling at 4.4%. The inflation surge was primarily due to the increase of the prices of food and nonalcoholic beverages.
Last month’s inflation hike was also caused by an increase in housing, water, electricity, gas and other fuel prices.
The top five inflation contributors in terms of commodities were rice, restaurants, rentals, LPG, and tomatoes.
The government already foresaw heightened inflation following the effects of the El Niño weather phenomenon in summer, promising a better inflation outlook for August.
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