BSP forecasts September inflation between 2% and 2.8%

The Bangko Sentral ng Pilipinas (BSP) has projected that September inflation will settle within the range of 2% to 2.8%. In a statement released late Monday, the central bank attributed this forecast to several factors contributing to downward price pressures.

According to the BSP, negative base effects, along with declining prices of food commodities—including rice, meat, and vegetables—are key contributors to the expected drop in inflation. Additionally, lower domestic oil prices and the appreciation of the Philippine peso are anticipated to further ease price pressures for the month.

While the central bank acknowledges the factors contributing to lower inflation, it also noted that the rising prices of fish and fruits, along with increased electricity rates, could counterbalance these effects.

Looking ahead, the BSP emphasized its commitment to maintaining price stability to foster balanced and sustainable economic growth and employment. The Monetary Board will continue to adopt a measured approach in addressing inflationary pressures.

The Philippine Statistics Authority is scheduled to release the official headline inflation data for September 2024 next week. For context, the headline inflation rate eased to 3.3% in August, down from 4.4% in July, indicating a trend toward lower inflation levels.