spot_img
28.1 C
Philippines
Friday, March 29, 2024

Inflation likely hit up to 3.8% in March

- Advertisement -

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said Monday inflation in March likely quickened to as high as 3.8 percent from 3.3 percent in February, led by higher power rates and weaker peso.

“The BSP forecast suggests that March inflation could settle within the 3 to 3.8 percent range,” Tetangco said in a statement.

He said the higher power rates in Manila Electric Co.-serviced areas following the Malampaya maintenance shutdown in February along with the weaker peso “could be partially offset by the decline in fuel and food prices this month.”

The government is scheduled to release the March inflation data next week.

Power distributor Meralco announced a P0.66-per-kilowatt-hour increase for a typical residential household in March, bringing the overall rate to P9.67 per kWh. This translated into a P132 increase in the total bill of a typical residential household consuming 200 kWh.

- Advertisement -
BSP Governor Amando Tetangco Jr.

The rate increase in March was mostly due to the upward movement in the generation charge, caused mainly by the 20-day Malampaya maintenance shutdown which took place on Jan. 28 to Feb. 16 this year. 

Meanwhile, the peso depreciated to a 10-year low of 50.40 per dollar on March 3, as investors’ anticipation of a Federal Reserve interest rates hike buoyed the greenback against most currencies.

Tetangco said monetary authorities would remain watchful of economic and financial developments that could affect the inflation outlook, in line with its commitment to price stability conducive to a balanced and sustainable economic growth.

Inflation in February accelerated to 3.3 percent from 2.7 percent in January, the fastest in 27 months, driven mainly by upward price adjustments in food and non-food items. 

It was the first time in more than two years that inflation breached the 3-percent mark. The last time inflation settled beyond the 3-percent level was in November 2014 at 3.7 percent.

The February inflation brought the average in the first two months to 3 percent, or at the middle of the government’s target range of 2 percent to 4 percent this year.

The policy-setting Monetary Board of Bangko Sentral kept the benchmark interest rates steady last week, mainly on prevailing manageable inflation and robust domestic economic growth.

It kept the interest rates at 3.5 percent for overnight lending, 3 percent for overnight borrowing and 2.5 percent for special deposit account.

The Monetary Board said its decision was based on its assessment that the outlook for inflation remained manageable, consistent with favorable growth prospects.

- Advertisement -

LATEST NEWS

Popular Articles