BSP projects August inflation at 1-1.8%

The Bangko Sentral ng Pilipinas (BSP) forecasts August inflation to range between 1 to 1.8 percent, an increase from July's 0.9 percent.

A BusinessWorld poll of 16 analysts yielded a median estimate of 1.3% for the August consumer price index (CPI), also picking up from 0.9% in July.

This projected inflation would mark the sixth consecutive month that inflation remained below the government's 2 to 4 percent target range.

Factors contributing to upward price pressures include higher costs of fruits, vegetables, and fish due to unfavorable weather, increased electricity rates, elevated domestic fuel costs, and a depreciating peso.

These upward pressures are partially mitigated by the continued decline in rice prices and lower meat costs, as noted by both the BSP and Metrobank.

The Philippine Statistics Authority (PSA) is scheduled to release the official August inflation figures on September 5.