MANILA: The Philippine central bank expects October annual inflation to be in a 7.1% to 7.9% range, with pressures seen from transport fare hikes, as well as high fuel and food prices after recent typhoons, and a weak peso, it said on Monday.

The government is due to release October inflation data on Nov. 4.

Inflation in September quickened to 6.9%, the fastest pace in four years, firming up expectations the central bank will hike rates further before year end, possibly even in manner that is a “little aggressive”.

Inflation in January-September averaged 5.1%, well outside the 2%-4% target for this year.

Philippines central bank may match Fed if it hikes rates by 75 bps

“Inflation is projected to gradually decelerate in the succeeding months as the cost-push shocks to inflation due to weather disturbances and transport fare adjustments dissipate,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.

The BSP, which has two more policy meetings before the year ends, will review interest rate settings on Nov. 17.