BSP sees inflation easing further within 5.3%-6.1% range

Inflation rate is seen to continue its downtrend for the fifth straight month in June, according to the latest projection by the Bangko Sentral Sentral ng Pilipinas (BSP).

In its month-ahead forecast released Friday, the BSP said inflation —which measures the rate of increase in consumer goods and services costs— could settle within the range of 5.3% to 6.1%.

The lower end of the projection range is below the 6.1% inflation print seen in May, while the upper end is at the same rate as the previous month.

“[T]he 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,” the central bank said.

Effective June 1, fuel firms rolled back the price of their LPG products by more than P6 per kilogram. 

Meanwhile, the BSP said the “higher prices of key food items, such as rice, vegetables, and fish, along with the increase of domestic oil prices and electricity rates as well as the depreciation of the peso are the primary sources of upward price pressures in June.”

Moving forward, the central bank said it continues to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation.

The official inflation figures for June will be announced by the Philippine Statistics Authority on July 5. —Ted Cordero/ VAL, GMA Integrated News