The Bangko Sentral ng Pilipinas (BSP) on Friday said that inflation this month likely settled below its 3-percent to 5-percent full-year target.
“The BSP forecasts inflation to remain low at 1.9 percent to 2.8 percent in September,” BSP Governor Amando Tetangco Jr. said in a text message to reporters.
He added that declining prices of premium gasoline, and stabilized prices of vegetables and fish after the monsoon rains were noted during the month.
However, Tetangco cited price increases in rice, selected oil products, and electricity rates in September.
“The BSP will continue to closely monitor the developments that shape the outlook in prices and economic activity to ensure that monetary policy is directed at safeguarding price stability in an environment of sustained economic growth,” he said.
Latest inflation figures showed that consumer prices post was at its four-year low, as inflation rate in August was recorded at 2.1 percent.
In its latest Monetary Board meeting, the central bank trimmed down its inflation forecast for this year to 3 percent from its previous projection of 3.3 percent.
Meanwhile, local think tank First Metro Investment Corp. and University of Asia and the Pacific Capital Markets Research expect inflation to reach the lower tail of 3-percent to 5-percent target for the entire 2013, despite bad weather conditions, political unrest in Syria, and volatile capital flows that might cause upside risks to inflation outlook.
“Despite high crude oil prices, pushed up primarily by political tensions in the Middle East [Syria and Egypt], mild increases in nonfood prices and better harvests starting October should keep inflation very much in check in the second half,” it stated.