MANILA – Monetary officials revised upwards the average inflation forecast for this year and 2013 due to combined impact of higher oil prices and weather-related disturbances, a government press release said.

The central bank’s policy-making Monetary Board raised yesterday the average inflation forecast for this year to 3.4 percent from 3.1 percent and the 2013 figure to 4.1 percent from 3.4 percent last July.

BSP Deputy Governor Diwa Guinigundo noted that amid the increase in the average inflation forecast for this year and the next the latest figures remain within the three to five percent target for this year until 2014.

Guinigundo said inflation outlook remains favorable and well-anchored.

He pointed out that although risks to inflation like higher international oil prices as well as prices of some domestic goods remain these are just “transitory.”

He said that in last July’s policy meeting, the board’s oil price assumption was at $104 per barrel but this was raised to $109 per barrel yesterday.

Relatively, inflation last August rose to 3.8 percent from the previous month’s 3.2 percent resulting to a 3.2 percent average for the eight-month period this year.

Guinigundo declined to answer queries whether rate of price increases have peaked this year pointing out that this is difficult to project unless one knows what weather-related disturbances the country still has to face for the rest of the year, the press release said.*

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