BSP sees swifter June inflation as fast as 4.2%

The rate of increase in the prices of consumer goods and services might have breached the government’s ceiling this month, according to projections by the Bangko Sentral ng Pilipinas (BSP).

In its month-ahead inflation forecast, the BSP said it expects June 2024 inflation to clock in within the range of 3.4% to 4.2%.

The upper-end of the forecast range is faster than May’s inflation print of 3.9%.

“Increases in the prices of agricultural commodities like rice, vegetables, meat, and fish, along with the peso depreciation and higher domestic oil prices, are the primary sources of upward price pressures for the month,” the BSP said.

“Meanwhile, lower electricity rates and fruit prices could contribute to the deceleration in inflation,” the central bank added.

The Philippine Statistics Authority is scheduled to release official inflation figures for June on July 5, 2024.

Inflation is the rate of increase in the prices of goods and services.

Moving forward, 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 formulation.

On Thursday, the central bank kept monetary policy rates but signaled that an interest rate is “somewhat more likely than before” in August. — RSJ, GMA Integrated News