MANILA - Inflation slowed in June, its lowest since December 2020, after remaining steady for 3 straight months, the state statistics bureau said Tuesday.
The consumer price index rose 4.1 percent, slower compared to the 4.5 percent in May, the Philippine Statistics Authority said in a virtual briefing.
The June CPI, however, is still slightly above the government target of 2 to 4 percent.
"The latest inflation number is consistent with expectations that inflation could remain above target in the near term as meat and oil prices remain elevated," Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in a statement.
The uptick in international commodity prices due to supply chain bottlenecks and recovery in global demand remain as upward risks for inflation, the BSP said.
Possible delays in easing of lockdown measures due to new COVID-19 variants could temper prospects for domestic growth, it added.
Diokno earlier said inflation could fall back within the government target within the year instead of in 2022.
Inflation could settle at an average of 3.9 percent this year, he said.
Higher inflation has an impact on household consumption which is a key factor in economic recovery.
The BSP also kept interest rates at a record-low 2 percent to encourage lending.