Poll: Inflation picked up in August

HEADLINE INFLATION may have slightly picked up in August as rising food and electricity costs were tempered by low rice prices, analysts said.

- Katherine K. Chan

A BusinessWorld poll of 16 analysts yielded a median estimate of 1.3% for the August consumer price index (CPI), picking up from 0.9% in July but slower than the 3.3% clip in August 2024.

If realized, August would mark the sixth month in a row that inflation was below the Bangko Sentral ng Pilipinas' (BSP) 2-4% target range.

The Philippine Statistics Authority is scheduled to release the August inflation data on Friday, Sept. 5.

The BSP projects inflation to have settled within the 1% to 1.8% range in August.

"Upward price pressures for the month are likely to arise from higher costs of fruits, vegetables, and fish due to unfavorable weather conditions," the BSP said in a statement late on Friday. "Higher electricity rates, elevated domestic fuel costs, and the depreciation of the peso likewise contribute to upside price pressures."

However, these could be partially offset by the low prices of rice and meat, the BSP said.

Metropolitan Bank & Trust Co. (Metrobank) said inflation likely picked up to 1.3% in August from the near six-year low in July because of "accelerating food prices due to disruptive weather and higher energy costs."

It noted that fish and vegetable prices rose as supply was disrupted after typhoons in late July and early August. However, the price of meat and fruits went up year on year, but at a slower pace.

Tropical storms Crising, Dante and Emong, and the southwest monsoon brought heavy rains and flooding in late July until early August, left P4.86 billion worth of agricultural damage, according to the Department of Agriculture.

ENERGY COSTS

Price pressures also emanated from higher power rates and pump prices in August.

"Among the factors for upward inflation pressures include higher price inflation for fish, fruits, and vegetables due to inclement weather, electricity rate hike, and higher petroleum prices," Angelo B.