BSP sees even faster Jan. price pickup

INFLATION likely accelerated in January to hit the high end of the government’s full-year 2018 target range, driven by rising food and crude prices as well as higher taxes on select goods under the tax reform law, the Bangko Sentral ng Pilipinas (BSP) said.

The central bank expects inflation to have clocked 3.5- 4% last month, which would be the fastest rate seen in three months. The estimate also signaled that inflation will likely pick up from December’s actual 3.3% that compared to the BSP’s 2.9-3.6% range for that month.

“The increase in the prices of domestic petroleum products on account of higher global crude oil prices along with higher food prices due to weather- related disturbances could contribute to the rise in inflation for January 2018,” the BSP’s Department of Economic Research said in a statement sent late last Wednesday.

“In addition, higher excise taxes on fuel, sugar- sweetened beverages with the implementation of the TRAIN this month, would lead to additional upward price pressures,” it added, referring to Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act.

“The increase in prices could be partly offset by lower electricity rates in Meralco (Manila Electric Co.)- serviced areas for the month.”

The Department of Finance on Jan. 30 gave a 3.3% estimate that was steady from December.

The Philippine Statistics Authority is scheduled to report official inflation data on Tuesday.