BSP expects June inflation at 6-7%

PHILIPPINE INFLATION likely accelerated to as high as 7% in June, as rising electricity rates and higher vegetable prices offset declines in oil and other key food items, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

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In its month-ahead inflation forecast, the BSP said inflation likely settled at 6% to 7% in June, faster than the 1.4% clip a year ago.

At the upper end of the forecast, June inflation would be the fastest in two months or since the 7.2% print in April.

At the bottom end, inflation would have cooled from the 6.8% print in May, marking the second consecutive month that consumer prices have eased.

June could also mark the fourth month in a row that annual inflation settled above the central bank’s 2%-4% comfort range.

June inflation is scheduled to be released on July 7.

“The decline of domestic oil prices and the lower prices of major food items, such as rice and meat, may temper inflation for the month. However, higher electricity rates and vegetable prices could partly offset these downward price pressures,” the BSP said in a statement.

Fuel prices have started to decline in June with retailers cutting pump prices by up to P9.08 a liter for gasoline, P20.03 per liter for diesel, and P2.24 per liter for kerosene.