Inflation may have accelerated in Sept

Inflation likely quickened in September, with most economists expecting it to return to the Bangko Sentral ng Pilipinas (BSP)’s two to four percent target for the first time in six months, following a sustained stretch of subdued price growth.

- By KEISHA TA-ASAN

Forecasts gathered by The STAR show inflation may have accelerated to between 1.9 and 2.5 percent last month. If inflation does breach the target in September, it would mark the first time it has climbed above two percent since February's 2.1 percent print.

Metrobank chief economist Nicholas Mapa expects inflation to rise to 2.5 percent in September, citing upside pressures in vegetable and fish prices due to the impact of recent typhoons.

Lower electricity rates could partly offset the upside pressures in food prices, while pump prices may provide limited relief. “Pump prices also could be a source of downside pressure, but to a lesser extent, as gasoline and diesel costs increased on a monthly basis, tracking global markets,” Mapa said.

Rizal Commercial Banking Corp. chief economist Michael Ricafort placed his own September inflation forecast at 2.1 percent year-on-year. He also said inflation could rise to two percent levels for the rest of the year.