Archive > Monthly Inflation Forecast

August 26, 2002 - The inflation rate in August is projected to increase to 2.6%-2.8% from 2.6% in July. The push will come from an increase in fuel prices. Last August 10 and 11, oil companies hiked fuel pump prices by P0.30 per liter. Nevertheless, while fuel prices increased, land transport fares have not risen and the prices of food and other commodities have remained stable. The price stability in these items are seen to soften the increase in overall inflation. Households, likewise, continued to benefit from lower electricity prices.

September inflation, however, could rise further as domestic fuel prices continue to absorb the impact of rising world crude prices over tensions on U.S. action plans on Iraq and OPEC measures on oil output.