MANILA, Philippines - Inflation may have accelerated to as fast as five percent in June on the back of higher food prices and transport fare hikes, the Bangko Sentral ng Pilipinas said over the weekend.
BSP Governor Amando M. Tetangco Jr. said the rate is forecast to settle between 4.1 percent and five percent this month.
“The elevated forecast reflects a combination of increases in prices of certain commodities, including rice, tuition fee hikes and provisional fare rate increases,” Tetangco said in a text message to reporters.
These factors were partly offset by “downward adjustments in electricity rates and a relatively stronger peso during the month,” he added.
Food prices remained elevated in June and this was still blamed to the natural disasters that hit the country late last year that caused supply disruptions. Jeepneys, meanwhile, were allowed by the government to increase the minimum fare by 50 centavos starting June 14.
Inflation already hit a 30-month high in May due to soaring prices of food and increases in housing and utility rates.
If the rate further picks up to five percent this month, this would be the fastest recorded following October 2011’s 5.2 percent.