BSP to review inflation path after 5.2% ‘setback’ in June

The Bangko Sentral ng Pilipinas (BSP is set to review its inflation forecasts, after prices of goods and services accelerated by 5.2 percent last month.

“The higher-than-expected June inflation outcome is a setback,” BSP Governor Nestor Espenilla, Jr. told reporters on Thursday.

The Philippine Statistics Authority reported inflation came in at 5.2 percent in June, the fastest in at least five years.

The June inflation breached the 4.3- to 5.1-percent the central bank had predicted, and the 4.9-percent outlook of the Department of Finance.

Espenilla noted the central bank will take into account the latest inflation figures and review their forecasts.

“We will review and update our situational assessment and forecast inflation path. This will shape the strength and timing of our next monetary policy response to firmly anchor inflation expectations,” he said.

“The BSP re-affirms its strong commitment to ensure that inflation returns to within the 2- to 4-percent target range as soon as possible.”

While the BSP has retained its 2- to 4-percent target range for the full-year 2018, it expects inflation to settle at 4.5 percent this year—in line with the revised forecast of the Development Budget Coordination Committee to 4.0 to 4.5 percent. —VDS, GMA News