BSP sees September inflation settling 6.8%, DOF sees it unchanged at 6.4%
The Bangko Sentral ng Pilipinas (BSP) forecast September inflation to settle around 6.8 percent while the Department of Finance (DOF) estimated the rate to remain at 6.4 percent.
The BSP and DOF released differing estimates on Friday.
The central bank's Department of Economic Research projects September inflation to settle at around 6.8 percent, with a range of 6.3 - 7.1 percent.
The DOF forecast September inflation unchanged at 6.4 percent as a decline in power rates "moderated inflationary pressure from non-food items."
In an economic bulletin, the DOF said :"In September, month-on-month price increase decelerated from 0.9 percent in August to 0.6 percent. September year-on-year inflation is seen at 6.4 percent, unchanged from August. "
The BSP said "higher domestic petroleum prices, higher prices of rice and other agricultural commodities due to Typhoon Ompong, and the peso depreciation contributed to the upside price pressures for the month.".
The central bank said "these could be partly offset by the downward adjustment in Meralco power rates. Looking ahead, the BSP will continue to remain on guard to evolving inflationary conditions to ensure that the monetary policy stance remains consistent with our price stability mandate.”
The central bank raised interest rates by 50 basis points for the second straight month on Thursday to curb inflation and defend the peso.
"Strong BSP ( Bangko Sentral ng Pilipinas) monetary action backed by two successive 50 bp ( basis points) policy rate hikes and the President’s support to administrative measures proposed by the Economic Development Cluster to remove non-tariff barriers on major food items will moderate food inflation in the short run," the DOF bulletin said.
"Policy reforms, including rice tariffication and budget support for agricultural productivity programs, will stem similar inflation episodes in the future," added the DOF bulletin. DMS
