The Bangko Sentral ng Pilipinas said December inflation likely surged to as much as 8.6 percent due to upward pressures from higher electricity rates, soaring prices of agricultural commodities and meat and fish products as well as rising gas prices.
“Meanwhile, the reduction in petroleum and rice prices as well as the peso appreciation could contribute to easing price pressures for the month,” the central bank said.
The country’s inflation rate is fresh from hitting a 14-year high of eight percent in November.
The upper end of the BSP’s projection sees headline inflation hitting new highs.
The BSP said it continues to closely monitor emerging price developments to enable timely intervention that could help prevent the further broadening of price pressures.
