BSP pegs July inflation to slow down to 0.5%-1.3%

Philippine monetary authorities are expecting that the country’s inflation rate cooled down last month amid the continued contraction in rice prices.

In its month-ahead forecast, the Bangko Sentral ng Pilipinas (BSP) said it projects July 2025’s inflation rate to settle within the 0.5% to 1.3% range.

The central bank’s projection for last month’s inflation print is lower compared to the 1.4% rate seen in June.

“Upward price pressures for the month are likely to be driven by higher meat and vegetable prices partly due to unfavorable weather conditions, increased electricity rates, elevated domestic fuel costs, and the depreciation of the peso,” the BSP said.

“These price pressures, however, could be partially offset by the continued decline in rice prices,” the central bank said.

The BSP said it will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making. —VAL, GMA Integrated News