The Bangko Sentral ng Pilipinas sees inflation in February ranging from 2.8 percent to 3.6 percent, partly due to high rice prices. The BSP forecast falls within its ideal range of 2 to 4 percent.

The lower end of the projected band is the same level recorded by the Philippine Statistics Authority in January, while the upper end is slightly lower than the 3.9 percent in December.

“Continued price increases for key food items, such as rice, meat, and fish, along with increased petroleum prices and electricity rates, are the primary sources of upward price pressures,” the BSP said in a statement released Thursday.

This as the Department of Agriculture reported that 11,480 metric tons of palay on 5,011 hectares of rice fields were lost due to El Niño as of 25 February, forcing rice vendors to keep prices elevated.

DA Assistant Secretary for Operations U-Nichols Manalo said Task Force El Niño has been coordinating efforts for the quick replanting of palay through water conservation on 15,000 hectares of rice fields.

The DA said it expects rice output this year to reach 20 million metric tons, which is enough supply to meet demand.

Meanwhile, Meralco, the country’s top power distributor, said household electricity bills rose by P115 this month due to higher power generation fees.

Local oil prices were also up as global prices increased due to the armed conflict between Israel and Hamas and the US attacks on Houthis, who are blamed for destroying cargo vessels passing through the Red Sea.

Since January, the Department of Energy said prices have climbed P4.45 per liter for gasoline, P4.30 per liter for diesel, and P0.45 per liter for kerosene.

However, the BSP said the lower prices of vegetables, fruits, and sugar could temper inflation.