Higher prices of rice and fuel have led the Bangko Sentral ng Pilipinas to forecast August inflation settling with the range of 4.8 percent to 5.6 percent.

If the lower end of the BSP's projection will be reached when the Philippine Statistics Authority (PSA) will announce August figures, it will mark a halt in the downtrend for inflation.

Inflation has been going down for six straight months, with July figures at 4.7 percent.

Among factors that could drive inflation higher are increased transport costs owing to higher train fares and toll rates, and the peso depreciation.

The BSP said it will continue to monitor developments affecting the outlook for inflation and growth in line with its data dependent approach to monetary policy formulation. DMS