June inflation likely quickened further to between 5.7 to 6.5 percent: BSP

ABS-CBN News

Posted at Jun 30 2022 03:47 PM

MANILA - Inflation in June likely accelerated further to between 5.7 to 6.5 percent, the Bangko Sentral ng Pilipinas said Thursday.

This is above the government's 2 to 4 percent target and is even higher than the 5.4 percent inflation recorded in May.
 
The continued increase in domestic oil prices, hike in electricity rates, higher prices of select food items, and the depreciation of the peso are among the primary sources of inflationary pressures during the month, the BSP said.

These could be offset by the power prices of LPG and fish, it added.

The BSP earlier said it was keeping an eye on the spillover effect of Russia's invasion of Ukraine, the tightening of interest rates in the US, and the slowdown in China that is affecting the global supply chain.

The central bank has already raised its benchmark interest rate by 50 basis points to 2.5 percent this year to temper inflation. Despite this, the BSP said inflation could remain above target in 2022 and 2023.

The BSP revised its inflation outlook upwards to 5 percent from 4.6 percent for 2022, and to 4.2 percent from 3.9 percent for 2023.

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