Headline inflation for July is projected to range between 4% and 4.8%, influenced by rising electricity rates, food prices, and oil costs, according to the Bangko Sentral ng Pilipinas (BSP).
This potential increase could push inflation above the 2% to 4% target for the first time in seven months.
The consumer price index (CPI) fell to a four-month low of 3.7% in June from 3.9% in May, averaging 3.5% in the first half of the year.
The BSP highlighted that higher costs for electricity, agricultural products, and oil are driving the inflationary pressures, although lower rice and fruit prices might provide some relief.
BSP Governor Eli Remolona Jr. indicated that inflation might exceed the target in July but is expected to return to within range by the third quarter, with possible rate cuts under consideration to manage economic activity.
Source: PhilNews24 | August 1, 2024
