MANILA -- The lower prices of rice and petroleum products are seen to contribute to the slowing down of inflation in June, which the Bangko Sentral ng Pilipinas (BSP) forecasts to stay at 2.2 percent to 3 percent.
In a statement Friday, the central bank said its Department of Economic Research (DER) also cited the cut in power rates and the strengthening of the Philippine peso during the month as additional factors that will help rein in the rate of price increases.
“Going forward, the BSP will remain watchful of the evolving inflation environment to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” it added.
Inflation posted an uptick to 3.2 percent last May due to the faster rate of price increases of some agricultural products.
Monetary officials, however, believe that this uptick is a freak occurrence.
The BSP's policy-making Monetary Board (MB) even slashed the central bank's 2.9 percent average inflation forecast for this year during its rate setting meeting this month down to 2.7 percent. The 2020 forecast was also cut from 3.1 percent to 3 percent. (PNA)
