Philippine inflation quickened in August on higher rice prices, snapping six straight months of deceleration and giving reason for the central bank to reconsider its interest-rate pause.
Consumer prices rose 5.3% from a year ago, faster than the 4.7% rate in July, the statistics agency said on Tuesday. The central bank saw August inflation between 4.8% to 5.6%.
Rice inflation quickened to 8.7%, marking the sixth consecutive month of increase. President Ferdinand Marcos Jr. has capped prices of the staple grain amid higher retail costs and reports of hoarding by traders. Rice makes up around 9% of the nation’s consumer basket.
The Philippine central bank, which is due to review monetary settings Sept. 21, has retained its hawkish bias despite keeping the key rate steady for three straight meetings. Governor Eli Remolona has flagged inflation risks including higher rice and fuel prices, and said a rate cut isn’t on the monetary authority’s radar at the moment.
--With assistance from Manolo Serapio Jr., Cliff Venzon and Cecilia Yap.
