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Manila, Philippines — Headline inflation is expected to settle within the four to 4.8 percent range in July, with upward pressure coming from higher electricity rates, elevated prices of some food items and rising oil prices, the Bangko Sentral ng Pilipinas (BSP) said. If realized, July inflation may breach the two to four percent target for the first time in seven months or since the 4.1 percent in November last year. The consumer price index (CPI) eased to a four-month low of 3.7 percent in June from 3.9 percent in May. Inflation averaged 3.5 percent in the first half. If inflation hits the upper end of the BSP’s month-ahead forecast, or at 4.8 percent, it will be the highest in eight months or since the 4.9 percent in October 2023. “Higher electricity rates along with the increased prices for agricultural commodities like vegetables, meat and fruits along with higher domestic oil prices are the primary sources of upward price pressures for the month,” the BSP said. On the other hand, lower rice and fruit prices along with the peso appreciation might have helped offset the upward inflationary pressures last month. “Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” the central bank said.
