07/01/2008 [ tribune.net.ph ]
The weakening peso is contributing to the further rise in prices, with the inflation rate expected to hit double-digit for the first time in June after many years.
The peso lost an average of 14 centavos against the US dollar to 44.896 from 44.756 on Friday.
Deputy BSP Gov. Armando Suratos said the BSP forecast inflation in June to range from 10.4 percent up to 11.2 percent.
Suratos said the now weaker peso has made the importation of a number of commodities more expensive than ever and adds to the impact of three others on prices as a whole.
Such other factors include the continued surge in world oil prices translating to higher prices at the pump, the wage and cost of living adjustments and the increase in the price of the staple rice and vegetables.
Data showed the peso falling steadily from a position of strength in January this year when it averaged P40.93.81 per dollar to P44.256 in June thus far.
The weakened peso now requires importers to raise more local currency than before to purchase the same amount of foreign goods.
Inflation was earlier expected to range in double digits between June up to at least September or longer than originally believed. Ruben Hortelano
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