Inflation seen zooming to 6.6-7.4% range in September

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Metro Manila (CNN Philippines, September 30) — The Bangko Sentral ng Pilipinas expects inflation, or the rate at which prices of basic goods increase, to accelerate further in September.

In a statement on Friday, the BSP said it projects inflation settled between 6.6% and 7.4% during the month. This range is above the 6.3% rate recorded in August.

Both endpoints are also above the BSP's 2-4% target band for 2022.

"Inflation for the month is expected to be driven by the increase in electricity rates and prices of key food commodities, as well as by the depreciation of the peso," said the central bank.

The peso further lost ground against the dollar during the month, even hitting the ₱59 level for the first time on Sept. 28. 

The BSP further said that the increase in commodity prices this month "could be offset in part by the decline in local fuel prices and lower meat prices."

To combat rising inflation, the central bank has so far cumulatively hiked rates by 225 basis points since May, bringing its key interest rate to 4.25%.

The Philippine Statistics Authority is scheduled to announce September's inflation rate on Oct. 5.