MikeLigalig.com

Philstar – Sat, Mar 24, 2012


MANILA, Philippines - After easing to its lowest level in 29 months, the Bangko Sentral ng Pilipinas (BSP) sees inflation rising due to soaring oil prices, higher food prices, and the continued weakening of the peso against the US dollar.

BSP Governor Amando Tetangco Jr. said in a text message to reporters that inflation for March would range between 2.2 percent and 3.1 percent compared to a 29-month low of 2.7 percent in February.

“Inflation could be higher than February’s rate of 2.7 percent if the impact of higher international prices, the weak peso, and increases in the prices of certain food items were not fully offset by lower utility rates and lower prices of some vegetables,” Tetangco stressed.

Despite the projected uptick in inflation, the BSP chief is still confident that inflation would fall within the three to five percent target set by the BSP for this year and next year.

However, he pointed out that the possibilities of second round effects resulting from higher oil prices point to higher inflation ranges ahead.

Inflation eased to 2.7 percent in February from four percent in January bringing the average inflation to 3.3 percent in the first two months of the year.



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