BSP think-tank sees 6.3 to 7.1 percent inflation range in September

ABS-CBN News

Posted at Sep 28 2018 05:43 PM | Updated as of Sep 28 2018 06:08 PM

Consumers buy vegetables at the Divisoria open market in Manila. The Bangko Sentral ng Pilipinas (BSP) think-tank on Friday projected inflation in September to settle at around 6.8 percent, with a range of 6.3 to 7.1 percent. Jonathan Cellona, ABS-CBN News

MANILA - The Bangko Sentral ng Pilipinas (BSP) think-tank on Friday projected inflation in September to settle at around 6.8 percent, with a range of 6.3 to 7.1 percent.

Higher domestic petroleum prices, higher prices of rice and other agricultural commodities due to typhoon Ompong and the weakening peso contributed to the upside price pressures in September, said the BSP's Department of Economic Research (DER).

However, these could be partly offset by the downward adjustment in Meralco power rates, it said. 

The BSP said it will continue to remain on guard to ensure a strong monetary policy stance.

The BSP has raised its benchmark borrowing rates by 50 basis points on Thursday, the fourth straight adjustment this year, raising the overnight borrowing rate to 4.5 percent. 

The Department of Finance projected a steady inflation rate of 6.38 percent in September. However, rice inflation is expected to reach 10 percent, according to the DOF's economic bulletin on inflation outlook for September 2018.