June inflation likely within 1.9 - 2.7 percent: BSP think tank

ABS-CBN News

Posted at Jun 30 2020 01:26 PM

Rice retailers tend to their stalls at the Libertad market in Pasay City on April 29, 2019. FILE / Jonathan Cellona, ABS-CBN News

MANILA — Inflation in June likely settled within 1.9 - 2.7 percent, the Bangko Sentral ng Pilipinas (BSP) economic research department said on Tuesday.

“Higher gasoline, diesel, and kerosine prices as well as the uptick in the price of rice due to supply bottlenecks contributed to positive price pressures during the month. These could be partly offset by slightly lower LPG price and electricity rate in Meralco-serviced areas during the month,” it said. 

BSP Governor Benjamin Diokno earlier said, inflation is the “least of their worry” at the moment, as it stands ready to use a “full range” of monetary tools as needed to support the economy.

Inflation picked up in May but held within the Bangko Sentral ng Pilipinas' target range for the fourth straight month.

The BSP forecast inflation to average 2.3 percent this year and 2.6 percent in 2021, higher than the April estimates but well within the official target of 2 to 4 percent for both years. 

Government is set to release June inflation data on July 7, 2020.