September 02, 2018 at 07:15 pm
Julito G. Rada
Inflation rate likely accelerated to 5.8 percent in August from 5.7 percent in July on higher food prices and demand-side pressures, Australia and New Zealand Banking Group Ltd. said in a report over the weekend.
“Driven by higher food prices and demand-side pressures, we expect headline CPI [consumer price index] to have increased by 0.3 percent month-on-month in August [versus July: 0.5 percent month-on-month]. This will translate into an annual increase of 5.8 percent year-on-year,” ANZ said.
“Although the sequential increase is likely to be lower than in July, the annual inflation will remain well above the central bank’s inflation target band of 2 to 4 percent,” ANZ said.
It said as the uptrend in inflation was still volatile, the case for further policy tightening of the Bangko Sentral ng Pilipinas remained firmly on the table.
Inflation in July hit a more than five-year high of 5.7 percent and brought the average inflation in the first seven months to 4.5 percent, beyond the Bangko Sentral’s target range of 2 percent to 4 percent this year.
The government is scheduled to release the August inflation data this week.