BSP pegs July inflation at 4.3%

The inflation rate for the month of July is projected to have a slight acceleration from the previous month, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said Friday.

The BSP, Diokno said, sees inflation or the rate of increase of goods and services settling at 4.3% this month from 4.1% in June.

The central bank’s point inflation projection for July came from its forecast range of 3.9% to 4.7%.

“Higher prices of domestic petroleum products and key food items along with the upward adjustment in Meralco electricity rates and a  weaker peso are the main sources of upward price pressures for the month,” Diokno said.

Data from the Department of Energy showed the year-to-date price per liter of gasoline stands at a net increase of P12.85, P10.30 per liter for diesel, and P8.70 per liter for kerosene.

The Manila Electric Co. hiked its household electricity rates by P0.2353 per kilowatt-hour (/kWh), bringing its overall rate for the month of July to P8.907/kWh from P8.6718/kWh in June.

The BSP’s inflation projection came days before the Philippine Statistics Authority (PSA) reports the July inflation print on August 5, 2021.

“Moving forward, the BSP will continue to monitor emerging price developments to ensure that its primary mandates of price stability conducive to balanced and sustainable economic growth is achieved,” Diokno said.—AOL, GMA News