MANILA – Sustained jumps in oil prices and their impact on power rates are expected to push mainly the June 2022 domestic inflation rate to between 5.7 percent to 6.5 percent.
In a statement on Friday, the Bangko Sentral ng Pilipinas (BSP) said “higher prices of key food items and peso depreciation” are also among the inflationary pressures during the month.
These factors, however, are seen to be countered by the lower price of liquified petroleum gas (LPG) and fish, it said.
“Looking ahead, the BSP will continue to closely monitor emerging price developments to enable timely intervention to arrest emergence of further second-round effects, consistent with BSP’s mandate of price and financial stability,” it added.
The range of projected inflation rate for this month is higher than the 5.4 percent last May, which in turn is the second consecutive month that rate of price increases surpassed the government’s 2-4 percent target band.
The average inflation in the first five months this year stood at 4.1 percent.
Monetary authorities have revised upwards the central bank’s average inflation forecast for this and next year to 5 percent and 4.2 percent, respectively.
These were previously at 4.6 percent for 2022 and 3.9 percent for 2023. (PNA)