Inflation may trend up further in the coming months after a brisk run up last month and probably peak in the third and fourth quarter as base effects become more manifest, the Bangko Sentral ng Pilipinas said yesterday.

Cyd Tuano-Amador, managing director of the BSP, said based on BSP projections, inflation is seen forming a "hump," picking up in the middle of the year but easing for the rest of the year until 2009.

"Inflation could be trending up because of volatile oil prices and pressure from imported food products," Amador said.

"There are also some base effects. We are coming from really very low inflation rates in 2007," she added.

Despite the uptick, monetary authorities expect the inflation outlook to be "generally manageable."

Amador said inflation is still expected to fall within the 3-5 percent target range this year and 2.5-4.5 percent next year.