MANILA - Higher food prices brought about by the monsoon floods could have pushed up inflation near four percent this month, the Bangko Sentral ng Pilipinas said on Tuesday.
“Inflation for August is forecast to fall within the range of 2.9 percent to 3.8 percent. Upward price adjustments due to the monsoon floods, increases in utility rates and the peso depreciation could somewhat tip inflation higher,” BSP Governor Amando M. Tetangco Jr. said in a text message.
“Our expectation is that, as in the past, price increases in vegetables and fish as a result of supply disruptions from natural calamities would be temporary. Our assessment continues to be that average inflation for 2012 and 2013 would fall within the lower half of our target range over the policy horizon of 3 to 5 percent,” Tetangco said.
Inflation hit a six-month high of 3.2 percent in July, or before the widespread flooding caused by the southwest monsoon rains triggered commodity supply disruptions across Metro Manila and a large part of Luzon.
Tetangco said the BSP will make “adjustments to policy stance and adopt prudential measures as appropriate, to ensure that our inflation target is protected.”
source: interaksyon.com
