August inflation hits 6.4%
Consumers continue to take the brunt of rising consumer price growth.
Philippine inflation in August soared to 6.4 percent, its highest level in nearly 10 years, as prices of basic food items and fuel continued to accelerate.
The country’s consumer price index last breached 6 percent in March 2009, when it hit 6.6 percent, according to the Philippine Statistics Authority.
Earlier market projections suggested August inflation to hit 5.9 percent.
Inflation in July was at 5.7 percent.
The August rate marked the sixth straight month that inflation surpassed the Bangko Sentral ng Pilipinas' 2-4 percent target range this year.
Inflation averaged 4.8 percent from January to August.
Food and non-alcoholic beverages costs rose 8.5 percent from a year earlier, while transport prices increased 7.8 percent.
Sought for comment, Philippine Retailers Association-Cebu president Robert Go said he sees the price hikes to continue through the year's end.
"Prices has been rising since our inflation keeps going up and is expected to continue until year end until next year," the retail businessman told The FREEMAN.
"Gasoline prices continue to increase as there are worldwide increases due to Iranian embargo and tightening supply of crude oil," he noted.
He believes the high global oil price has significantly pushed up domestic prices.
"This oil increase is (among the main causes) of consumer price increase," Go said.
The inflation's fresh peak is seen to trigger the central bank to raise key interest rates for the fourth time this year when it reviews monetary policy on Sept. 27.
In a statement yesterday, BSP governor Nestor Espenilla said the central bank "will weigh the need for further monetary policy action."
He stressed the need "to restore inflation back to the target range soonest and securely anchor inflationary expectations."
The BSP had raised its benchmark rate three times so far this year totalling 100 basis points in the last three months.
Inflation was earlier expected to peak either in August or September and reiterated it would return inside the 2-4 percent target range next year.