Inflation may quicken to 5.7% in September: economist

Philippine inflation may pick up to 5.7 percent in September, an economist said Wednesday.

“In view of the storm damage and the oil price hikes, it’s still possible to see inflation…pick up to around 5.7 [percent] this month,” said RCBC Chief Economist Mike Ricafort.

The economist noted that inflation could ease towards the end of the year, and this trend might continue until the first quarter of next year.

“It’s possible, by the 4th quarter, well because of the still high base effects, so there’s still chance for it to again resume its easing mode at 4 percent levels. And by December, it would be a little over 4 percent, around 4.1,” he said.

Government is expecting inflation to settle to its 2 to 4 percent target range by the end of 2023.

Inflation quickened to 5.3 percent in August, after a 6-month decline.

“It has been estimated that local inflation could have already reached below 4 percent by as early as November to December, but in view of these recent developments on rice and also on higher oil prices, so this could be delayed by only a few months, around the first quarter, around January,” Ricafort said.

“Around January, we may even see inflation at around 3 or even less than 3 percent levels,” he said.

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