Prices of consumer goods and services are seen to have increased at a faster rate in June, breaching the government's target, the Bangko Sentral ng Pilipinas said.
In its month-ahead inflation forecast, the BSP predicted June inflation to range between 3.4% and 4.2%.
"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.
The BSP's forecast is faster than May's inflation print of 3.9%.
"Meanwhile, lower electricity rates and fruit prices could contribute to the deceleration in inflation," the BSP added.
In the future, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation.
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