Food prices were to prove slightly elevated in February, likely averaging 3 percent for the month, based on latest forecast by analysts at Moody’s Analytics.
This is higher than the low end of a forecast released earlier by the Bangko Sentral ng Pilipinas (BSP) ranging from 2.8 percent to 3.6 percent to signal its stance that the monetary policy settings should remain sufficiently tight in the immediate term.
The private forecast recognizes that food prices on key commodities such as the rice staple remain a risk in the minds of monetary authorities who reported above-target inflation averaging 6 percent last year.
The BSP in latest forecast said higher electricity rates are an added concern for consumers. The utilities component of the price survey in January more than doubled when this rose by 1.5 percent in January.
