Upticks in domestic fuel prices and some food items are projected to bring the July rate of price increases to between 3.9 percent and 4.7 percent, or an average of 4.3 percent.
In a Viber message to journalists on Friday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said hikes in power rates in areas being serviced by the Manila Electric Company (Meralco) and the depreciation of the peso against the US dollar are also upside risks to inflation rate this month.
“Moving forward, the BSP will continue to monitor emerging price developments to ensure that its primary mandates of price stability conducive to balanced and sustainable economic growth is achieved,” Diokno said.
The rate of price increases decelerated to 4.1 percent in June after hitting its highest so far this year at 4.7 percent in February.
The average inflation in the first half of the year stood at 4.4 percent, higher than the government’s 2 percent to 4 percent target band until 2023.
Monetary authorities expect inflation to remain elevated until the third quarter but the full-year average is seen at 4 percent.
Source: Philippines News Agency
