Headline inflation likely accelerated to 3.4 percent in September, the Finance department said, driven by higher prices of food and non-food commodities.
The forecast figure — still within the 2 percent to 4 percent target for the year — is higher than the 3.1 percent registered in August and the 2.3 percent recorded a year earlier.
The last time the country’s inflation rate exceeded 3.4 percent was in November 2014 when it hit 3.7 percent.
Official inflation figures for September will be released today by the Philippine Statistics Authority.
The Bangko Sentral ng Pilipinas earlier gave a forecast range of 2.8 percent to 3.6 percent for September, citing higher pump prices and the peso’s depreciation.
“Weather disturbances caused price increases in food items especially vegetables,” the Finance department said in an economic bulletin released on Wednesday.
Prices of food and non-alcoholic beverages likely grew by 3.6 percent last month, higher compared with the 3.5 percent in August and 3.1 percent in September 2016.
The department also said that fuel and power rate increases also contributed.
“The apparent acceleration in the general price level is largely due to base effects boosted by fuel prices,” it said.
Inflation for the electricity, gas and other fuels sub-group likely picked up to 8.4 percent, a reversal from the 1.5 percent contraction in September of last year.