(PNA file photo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) has projected the continued deceleration of the domestic inflation rate for June 2023, forecasting it between 5.3 percent and 6.1 percent.
The BSP, in a statement Friday, identified the upside risks to the rate of price increases in June as the upticks in the prices of key food items, such as rice, vegetables, and fish, as well as the higher prices of domestic fuel prices and electricity rates.
It said the depreciation of the peso against the US dollar likely contributed to the upside risks during the month.
However, these factors are seen to be countered by the “lower prices of meat and fruits, as well as the rollback in LPG (liquefied petroleum gas) prices could contribute to downward price pressures during the month.”
“Going forward, BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” the statement added.
The domestic inflation rate has been on a downward path after hitting its 14-year high of 8.7 percent in January.
In May, it slowed to 6.1 percent from the previous month’s 6.6 percent.
The average inflation in the first five months this year stood at 7.5 percent, still above the government’s 2 percent to 4 percent target band.
Monetary authorities forecast the monthly inflation rate to return to within-target levels by October or November this year.
The BSP’s average inflation forecast for this year is 5.4 percent. (PNA)
