Economists Predict Slightly Eased Inflation in August, Remain Above Target

A poll of economists conducted by The Philippine Star yielded a median forecast of 6.1 percent for August inflation in the Philippines, slightly lower than the 6.2 percent print in July but still above the Bangko Sentral ng Pilipinas' (BSP) two to four percent target range.

The poll was conducted among 10 economists and forecasts ranged from 5.9 percent to 6.3 percent, with some attributing the elevated inflation rate to higher food and fuel prices, weather-related supply disruptions, and a weak peso.

China Bank chief economist Domini Velasquez expects headline inflation to hold steady at 6.2 percent in August, citing price pressures from key food items such as rice, corn, fish, vegetables, fruits, eggs, and cooking oil, which have been disrupted by more than two weeks of steady rainfall.

Velasquez also noted that higher fuel and cooking gas prices amid persistent Middle East tensions added to price pressures, but was partly offset by lower electricity rates in areas served by Manila Electric Co. and softer meat prices.