The Bangko Sentral ng Pilipinas’ (BSP) month-ahead inflation forecast shows that increased prices of goods and services may quicken for October.

Inflation may settle within BSP’s range of 7.1% to 7.9% in October.

“Inflation pressures for the month are expected to emanate from transport fare hikes, elevated domestic petroleum prices, higher agricultural commodity prices due to recent typhoons, and the depreciation of the peso,” BSP says.

This could however be offset by the reduction in electricity rates for Meralco consumers, lower LPG prices, and reduction in prices of fish.

The central bank says in the succeeding months, inflation is projected to gradually decelerate “as the cost-push shocks to inflation due to weather disturbances and transport fare adjustments dissipate.”

“Looking ahead, the BSP will continue to monitor closely emerging price developments to enable timely intervention that could help prevent the further broadening of price pressures, in accordance with the BSP’s price stability mandate,” BSP said.  

In September, the Philippine Statistics Authority (PSA) reported that inflation rose to 6.9% due to faster pace in price increases in food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport.