The Bangko Sentral ng Pilipinas (BSP) said on Wednesday that Philippine headway inflation will likely settle at the 1.8- to 2.6-percent range in the month of September.
In a statement on Wednesday, the BSP said lower rice, oil and energy prices, stronger peso and higher price of cooking gas in September would result in a lower inflation rate range for the month.
The BSP’s Department of Economic Research provided the forecast. August 2020’s inflation rate was at 2.4 and September 2019’s was 0.9 percent.
“Lower rice and oil prices as well as Meralco power rates, along with the continued appreciation of the peso are expected to be the primary sources of downward price pressures for the month,” the BSP said.
“These could be partly offset by the slightly higher price of LPG (liquefied petroleum prices),” it added.
Official inflation data for September will be released by the Philippine Statistics Authority (PSA) this October 6.
According to latest PSA data, rice prices went down in the first week of September, with regular milled rice hitting P37.91 per kilogram from P38.08 a kilogram a week before.
Based on monitoring by the Department of Energy, local oil companies increased gasoline prices P0.20 by per liter, diesel by P0.05 per liter and kerosene by P0.45 per liter last September 29, which could have little effect on the month’s inflation rate.
Also, oil companies raised the price of liquefied petroleum gas (LPG) last September 1 by 15 to 18 centavos per kilogram, or about P1.65 to P1.98 per 11-kilogram cylinder.
Furthermore, the per kilowatt-hour (kWh) rate of the Manila Electric Co. (Meralco) for households consuming 200 kWh monthly was reduced by P0.0623 last month.
The Philippine peso, for its part, is currently trading at a favorable P48 per $1 level. The peso usually trades at P50 per $1.