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INFLATION likely quickened in September due to higher electricity rates and food prices as well as the continued depreciation of the Philippine peso, according to analysts.
A BusinessWorld poll of 13 analysts yielded a median estimate of 6.7% for September inflation, at the low end of the 6.6-7.4% forecast of the Bangko Sentral ng Pilipinas (BSP).
If realized, September inflation would be faster than the 6.3% seen in August and the 4.2% last year. It would also mark the highest print in 45 months or since the 6.9% print in October 2018.
Inflation in September will also continue to breach the central bank’s 2-4% target for a sixth straight month.
The Philippine Statistics Authority (PSA) is scheduled to release the latest consumer price index (CPI) data on Oct. 5 (Wednesday).
“Inflation for the month is expected to (have been) driven by the increase in electricity rates and prices of key food commodities, as well as by the depreciation of the peso,” the BSP said in a statement on Friday.
Customers of Manila Electric Co. (Meralco) saw higher electricity bills in September after the overall rate went up by P0.3907 per kilowatt-hour (kWh) to P9.9365 from P9.5458 per kWh in August. This is after the combined reduction of P0.9154 per kWh in the past two months.
Prices of food have gone up in recent weeks, reflecting the impact of Super Typhoon Karding (international name: Noru) and the weaker peso against the dollar.
“(Higher inflation) could be offset in part by the decline in local fuel prices and lower meat prices,” the BSP said, reiterating that it will continue to closely monitor developments in accordance with its price stability mandate.
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