TYPHOON Pedring’s impact on inflation is likely to be minimal and at worst one-off, according to the Bangko Sentral ng Pilipinas.
BSP Governor Amando Tetangco Jr. said that price movements in September will likely remain at a range of 3.8 to 4.8 percent, given the damage on crops as well as supply constraints.
“In the review that will be done, the impact of the typhoon will have to be considered and as a usual practice we will review inflation forecast and consider a revise if we see a need. But given everything, the inflation rate for 2011 will still be within the target range,” Tetangco told reporters.
The Department of Agriculture had reported that the typhoon cost at least P729-million in damaged crops and infrastructure.
According to the agency, crop damage hit 45,607 metric tons, of which rice made up 35,175 MT; corn, 6,322 MT; and high-value commercial crops, 110 MT.
The BSP on Monday had said price movements in September might have settled at the upper end of the target range amid increases in prices of vegetables and canned goods.
Tetangco had said last month’s inflation rate would likely fall at 4.8 percent, slightly below the BSP’s full-year target range of between three to five percent, given increases in prices of some commodities, coupled with the volatile movement of the peso.
At end-August, inflation had averaged 4.8 percent, using the 2006-based consumer price index.
Tetangco said the BSP will be vigilant of the developments here and abroad to ensure policy settings remain appropriate.
The next meeting of the policy-making Monetary Board is on the third week of this month.
