The Bangko Sentral ng Pilipinas (BSP) expects August 2024 inflation to settle within the range of 3.2 percent to 4 percent.

“Higher electricity rates and higher prices for agricultural commodities, owing to unfavorable weather conditions, are the primary sources of upward price pressures for the month,” the BSP said in a statement on Friday.

The BSP said, however, these are expected to be offset by lower domestic oil prices as well as lower rice, fish, and meat prices along with the peso appreciation.

Measured steps

“Going forward, the Monetary Board will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment,” it said.

The Philippine Statistics Authority is set to release the August 2024 headline inflation data next week.

Headline inflation accelerated to 4.4 percent in July from 3.7 percent in June.

BSP Governor Eli Remolona Jr. earlier said the country’s headline inflation is projected to trend downward to within the government’s 2 to 4 percent target after the uptick in July.

The BSP’s risk-adjusted inflation forecast for 2024 was at 3.3 percent.