MANILA – The Bangko Sentral ng Pilipinas (BSP) has forecast June’s inflation rate to range from 1.9 percent to 2.7 percent.
In a Viber message to journalists on Tuesday, BSP Governor Benjamin Diokno said upside risks to the rate of price increases in the sixth month of the year are the upticks in the prices of gasoline, diesel, and kerosene, as well as that of rice, due to supply issues.
However, these factors are seen to be countered by the drop in electricity prices in areas being serviced by the Manila Electric Company (Meralco) and the decline in the prices of liquefied petroleum gas (LPG).
“Looking ahead, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” Diokno added.
The rate of price increases has continued to decelerate since the start of the year, with the May figure at 2.1 percent.
Average inflation rate to date is at 2.5 percent, well within the central bank’s 2 percent to 4 percent target for this year until 2022.
The BSP has forecast inflation to average 2.2 percent this year and 2.4 percent next year. (PNA)
