High oil prices, wage hikes cloud BSP inflation outlook.

(From BusinessWorld (Philippines))

Byline: Karl Lester M. Yap

Higher oil prices and wage adjustments pose risks to the inflation outlook for the second half of the year, the central bank said.

"The balance of risks to the inflation outlook remains tilted toward the upside, linked mainly to movements in oil prices," the Bangko Sentral ng Pilipinas (BSP) said in its second-quarter inflation report issued late last week.

Despite forecasts of decelerating inflation in the second half, prospects of higher global crude prices might lead to adjustments in domestic power costs which could create pressure for prices of goods and services to go up. …