BSP says inflation ''to remain elevated in the coming months''
The Bangko Sentral ng Pilipinas said Thursday inflation is ''expected to remain elevated in the coming months due to continued impact of supply shocks on food prices and the rise in global oil prices.''
The Philippine Statistics Authority (PSA) said inflation in September reached 6.1 percent from 5.3 percent in August.
''The potential impact of new petitions for transport fare adjustments, higher domestic prices of key food items facing persistent supply constraints, higher-than-expected minimum wage adjustment in areas outside NCR, impact of El Nino weather conditions on food prices and utility rates, and higher electricity rates are the major upside risks to the inflation outlook,'' said the BSP.
''Meanwhile, the impact of a weaker-than-expected global recovery is the primary downside risk to the outlook,'' it added.
The central bank said it is ready ''to resume monetary policy tightening as necessary to prevent the renewed broadening of price pressures as well as the emergence of additional second order effects in view of the persistent upside risks to the inflation outlook.''
The BSP said it supports the timely and effective implementation of non-monetary government measures to mitigate the impact of persistent supply-side pressures on inflation. BSP
