The Bangko Sentral ng Pilipinas (BSP) forecasts inflation rate to stay between 5.9 to 6.7 percent this month.
In a statement on Wednesday, the central bank said the rate of price increases during the month “was driven by the continued increase in key food prices.”
It, however, said this factor “could be offset in part by the decline in global oil prices, the reduction in electricity rates, lower meat and fish prices, and appreciation of the peso.”
“Looking ahead, the BSP will continue to monitor closely emerging price developments to enable timely intervention that could prevent further broadening of price pressures, consistent with BSP’s mandate of price stability conducive to sustainable economic growth,” it added.
Domestic inflation rate further accelerated last July to 6.4 percent, the fastest since October 2018.
The average inflation to date stood at 4.7 percent, higher than the government’s 2 to 4 percent target for this year.
The BSP forecasts inflation this year to average at 5.4 percent. (PNA)