BSP flags higher inflation in June

Consumer prices could have accelerated to as high as 1.9 percent last month, driven by higher prices of meat, vegetables, and oil, alongside the depreciation of the peso, the Bangko Sentral ng Pilipinas (BSP) said on Monday, June 30.

- By DERCO ROSAL and BEN ARNOLD DE VEA

The central bank expects the inflation rate to fall within the range of 1.1 percent to 1.9 percent in June this year, a modest increase from the 1.4 percent recorded in May, which marked the fourth consecutive month of deceleration.

According to the BSP, "Upward price pressures for the month are likely to be driven by the higher meat and vegetable prices, elevated oil prices, and the depreciation of the peso."

Data from the Department of Agriculture, as of June 27, 2025, showed that prices for pork picnic shoulder (kasim) in Metro Manila markets averaged P394.37 per kilogram, hind leg at P390.56 per kilogram, and belly at P442.65 per kilogram.

These figures indicated an increase compared to the end of May 2025, when kasim averaged P390.08 per kilogram, pigue at P388.52 per kilogram, and liempo at P439.39 per kilogram.

The report noted that oil prices also registered increases in recent weeks, with local gasoline pump prices rising for six consecutive weeks, diesel for four, and kerosene for three.

While these prices have normalized slightly with a rollback scheduled for Tuesday, July 1, their earlier upward trend contributed to inflationary pressures.