BSP Sees Inflation Uptick
The Bangko Sentral ng Pilipinas projects March 2022 inflation or the rise in the price of goods and services, to settle within the 3.3 to 4.1 percent range.
Photo Insert: While there has been revenge spending in restaurants as families flock to the malls, there has been a noticeable decrease in consumer goods purchases indicating the forthcoming economic malaise.
BSP said the uptick in the inflation rate is due to the continued oil price hikes, which has seen 12 consecutive price hikes along with higher meat prices, and the depreciation of the peso are the primary sources of inflationary pressures during the month.
Meralco's increase in its serviced areas has also been pinpointed by the Bangko Sentral as a key reason for the rise in inflation which robs residents of their purchasing power.
However, the BSP said that the price increases in Meralco and other items such as energy could be offset in part by lower water rates in Maynilad and Manila Water-serviced areas and the observed decrease in prices of rice, fish, and vegetables due to easing supply constraints.
Looking ahead, the BSP said it will continue to monitor emerging price developments and possible second-round effects to help achieve its primary mandate of price stability that is conducive to the balanced and sustainable growth of the economy.
The Financial District research team sees hard days ahead and a possible economic crunch going to August, the ghost month, where economic activity is at its quietest.
TFD teams have scoured the malls and saw that while there was a rise in foot traffic, there has been no considerable increase in the purchase of goods.
TFD's Ardee Urbina said that while there has been revenge spending in restaurants as families flock to the malls, there has been a noticeable decrease in consumer goods purchases indicating the forthcoming economic malaise.