'Although damages to farm output may not be as severe as anticipated thanks to some late rain, supply has still tightened,' Chan said.

'The fall in supply when demand is rising -- partly as a result of the recent fiscal boost -- is putting upward pressure on prices.'

The high base effect due to soaring fuel prices a year ago is fading, she noted, adding: 'Price growth is expected to gather steam in coming months and become a policy concern again.'