August Inflation Rate Expected To Be Between 4.1 To 4.9 Percent – BSP
The Bangko Sentral ng Pilipinas (BSP) expects August inflation to accelerate, settling within the 4.1 to 4.9 percent range.
According to BSP Governor Benjamin Diokno, the latest central bank projection is faster than the 4.0% inflation rate recorded in July. He pointed to higher prices for LPG (liquefied petroleum gas), Meralco electricity, and key food items along with the depreciation of the peso as sources of the upward price pressures.
In a separate report, the Department of Energy reported that household LPG prices in Metro Manila are estimated at ₱691 to ₱997 per 11kg tank, which was a result of oil firms’ price increase by ₱3.26 to ₱3.35 per kg since August 1, 2021.
Meanwhile, the Manila Electric Co. (Meralco) increased its rates by 9.65 cents per kilowatt-hour, which brought the overall household rate from ₱8.9071/kWh in July to ₱9.0036/kWh in August. The price hike is expected to increase the total electricity bill of residential customers consuming 200 kWh by at least ₱19. These spikes however could be offset by the decline in domestic petroleum and rice prices, Diokno added.
The BSP’s inflation reports for the month of August will be released on September 7, 2021.