The Bangko Sentral ng Pilipinas (BSP) on Wednesday projects August inflation to settle within the range of 5.9 to 6.7 percent.

July inflation was reported at 6.4 percent, highest in nearly four years.

BSP said Inflation for August was driven by continued increase in key food prices.

''But this could be but could be offset in part by the decline in global oil prices, the reduction in electricity rates, lower meat and fish prices, and appreciation of the peso,'' said BSP.

BSP added it will continue to monitor closely emerging price developments to enable timely intervention that could prevent further broadening of price pressures, consistent with BSP’s mandate of price stability conducive to sustainable economic growth. DMS