Manila: The Bangko Sentral ng Pilipinas (BSP) announced that inflation in the Philippines likely decreased to below 1 percent in July. In a statement released on Thursday, the BSP projected that inflation for the month would settle within a range of 0.5 percent to 1.3 percent.

According to Philippines News Agency, the BSP identified several factors that could influence inflation in July. Price increases in meat and vegetables, driven by unfavorable weather conditions, were noted as significant contributors. Additionally, rising electricity rates, elevated domestic fuel costs, and the depreciation of the peso were also cited as potential upward pressures on prices.

The BSP also mentioned that these pressures might be partially mitigated by the ongoing decline in rice prices. The central bank emphasized its commitment to monitoring developments that could affect inflation and growth, maintaining a data-driven approach to its monetary policy decisions.

In June, headline inflation was recorded at 1.4 percent. The Philippine Statistics Authority is expected to release official July inflation data on August 5.