MANILA, Philippines — Inflation is expected to slow down in June, anchored by cheaper prices of meat and fruits during the month, so says the Bangko Sentral ng Pilipinas.
In a statement on Monday, the central bank projected consumer price growth would settle between 5.3-6.1% in June. If the upper range of the forecast is realized, the figure would match the May outturn.
For context, the downtrend of inflation in the past four months was driven in part by supply imports and higher interest rates as a result of the BSP’s aggressive monetary policy stance.
The BSP still expects higher prices of certain food and commodities to drive inflation.
“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,” the statement read.
Aside from prices of meat and fruits moving slower, the rollback in prices of liquefied petroleum gas is expected to crimp the ascent of inflation.
“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 central bank added.