BSP raises 2014, 2015 inflation estimates

Posted at 06/19/14 5:13 PM

MANILA - The Bangko Sentral ng Pilipinas (BSP) on Thursday raised its inflation forecasts for this year and the next with pressures coming from higher food, transport and power costs, a senior official said.

The central bank now sees average 2014 inflation at 4.4 percent against 4.3 percent previously, and 3.7 percent in 2015 from 3.4 percent, Diwa Guinigundo, central bank deputy governor, told reporters.

The 2014 estimate is above the midpoint of the central bank target of 3-5 percent, while the 2015 forecast is near the top end of its 2-4 percent goal.

The central bank earlier kept its policy rate at a record low of 3.5 percent but raised the rate on its short-term special deposit account facility.