The Bangko Sentral ng Pilipinas (BSP) had anticipated the recorded 3.3% inflation rate for August 2024.
According to the BSP, this inflation figure aligns with the medium-term inflation path and could be attributed to the government’s actions. Earlier, the central bank issued a forecast range of 3.2% to 4.0%.
The recent inflation outturn is consistent with the BSP’s latest assessment that inflation would return to the target range after the temporary increase observed in July.
This moderation is said to be due to easing supply pressures on key food items, particularly rice.
The implementation of reduced rice tariffs is expected to help ease inflation in the coming months.
The balance of considerations for the inflation outlook remains tilted towards a downside trend for 2024 and 2025, with a slight upward bias projected for 2026.
Downside risks are primarily linked to lower rice import tariffs, while upside risks could stem from higher electricity rates and external factors. In response, the Monetary Board is committed to a measured approach to ensuring price stability, supporting balanced and sustainable economic growth and job creation in the country.