Manila: The Bangko Sentral ng Pilipinas (BSP) projects headline inflation to settle within the range of 5.6 percent to 6.6 percent in July.
According to Philippines News Agency, the central bank identified potential upward pressures on prices for the month. These could originate from elevated domestic petroleum pump prices, higher electricity rates, a rise in fish prices, and the peso's depreciation against the strengthening US dollar.
The BSP also noted that despite these challenges, certain factors are expected to alleviate inflationary pressures. The prices of key food commodities, such as rice, meat, vegetables, and fruits, are projected to decrease.
The central bank emphasized its commitment to remaining vigilant and responsive to incoming data, particularly concerning inflation and growth prospects. Additionally, it will continue to monitor developments in the Middle East for their potential impact on inflation and economic activity.
For context, headline inflation in the Philippines was recorded at 6.4 percent in June. The Philippine Statistics Authority is scheduled to release the July inflation data on August 5.
