BSP projects February inflation to hit 3.2%

The Bangko Sentral ng Pilipinas (BSP) projects that the inflation rate for February will rise to 3.2%, driven primarily by increases in the prices of oil, rice, and certain meat products.

This projected inflation rate is higher than the 3% recorded in the previous month.

The BSP's forecast for February falls within the central bank's projected range of 2.8% to 3.6%.

Upside risks to inflation are anticipated to be offset by lower electricity rates and improved supply of fish and vegetables.

The BSP has also revised its average inflation rate projection for the year upwards from 3.4% to 3.7%, largely due to escalating global oil prices and their impact on food prices.

Despite the upward revision, the BSP maintains that the annual inflation projection remains within the government's target band of 2% to 4%.

Global oil prices soared in February amid tight supply and geopolitical tensions, with Brent crude oil jumping beyond $100 on Monday after Western nations imposed new sanctions on Russia.

Gasoline, diesel, and kerosene prices have increased significantly since the start of the year.