The Bangko Sentral ng Pilipinas (BSP) expects inflation to settle between 5.5% and 6.5% in August, with higher food and fuel prices likely to keep price pressures elevated.
The central bank said higher prices of rice, vegetables, fruits and fish, partly due to unfavorable weather conditions, as well as elevated domestic fuel costs, could push up inflation during the month.
Those pressures could be partly offset by lower meat prices, cheaper electricity and a stronger peso, the BSP said.
“The BSP will remain vigilant and guided by incoming data, particularly on inflation and growth prospects,” the central bank said.
It added that it would continue to assess the impact of developments in the Middle East and recent weather disturbances on the inflation and economic outlook.
Headline inflation eased to 6.2% in July from 6.4% in June.
The Philippine Statistics Authority is scheduled to release August inflation data on Sept. 4.
