Friday, April 19, 2013

PH inflation seen to accelerate to 4.1% this year





The country’s inflation is expected to accelerate this year due to rising demand for goods and services, and potential disruptions in the supply of some food products.


According to the United Nations Economic and Social Survey of Asia and the Pacific (Unescap), average inflation this year may settle at 4.1 percent—up by a full percentage point from last year’s 3.1 percent.


But Unescap noted that the latest projection is still within levels considered manageable. Its forecast is also within the Bangko Sentral ng Pilipinas’ official target range of 3 to 5 percent.


Yusuke Tateno, economic affairs officer of Unescap, said the projected rise in inflation would result from demand pressures brought on by rising incomes in the country, as well as potential weather disturbances that could adversely affect the supply of some agriculture items.


“We see a significant increase in inflation from the 2012 level but the projection is still a manageable level,” Tateno told reporters.


He said a 4.1-percent inflation for this year would be lower than the 4.6 percent registered in 2011. Unescap’s inflation forecast for this year is higher than the BSP’s latest projection of 3.3 percent.


While Unescap expects rising incomes to push demand and inflation, the BSP said that the country’s rising production capacity would boost the supply of goods and services, thus tempering the inflationary impact of rising demand. Michelle V. Remo


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Tags: Business , economy , Inflation , Philippines , Unescap



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