BSP sees manageable inflation path despite slightly faster rate in July

The Bangko Sentral ng Pilipinas (BSP) sees inflation as "manageable" despite the slight acceleration posted in July.

"The BSP continues to see a manageable inflation outlook over the policy horizon after taking into consideration the latest inflation reading in July," BSP Governor Nestor Espenilla Jr. said in a statement on Friday.

Headline inflation clocked in at 2.8 percent last month, from 2.7 percent in June, the Philippine Statistics Authority reported.

This is faster than the 2.7 percent downwardly revised inflation rate in June, and much faster than the 1.9 percent in July 2016.

"Inflation is projected to remain close to the midpoint of the national government's target of 3.0 percent ± 1.0 percentage point in 2017 to 2019," Espenilla said.

"The inflation path will be supported by the continued strength of the domestic economy as well as negative base effects in the last four months of 2017," he added.

The "within-target" path of inflation over the policy horizon provides the BSP with the flexibility to assess monetary tools to enhance further its responsiveness to the evolving requirements of the economy "... with due consideration of external factors with potential impact on domestic monetary conditions," Espenilla said. — VDS, GMA News