The Bangko Sentral ng Pilipinas expects the inflation rate to slow down in July due to cheaper prices of rice and liquified petroleum gas.
The BSP Department of Economic Research said the inflation rate likely settled within the 2-percent to 2.8-percent range in July.
“Lower rice and domestic LPG prices along with downward adjustment in electricity rates and the recent peso appreciation are seen to temper inflation pressure during the month,” said the BSP.
“These could be partly offset by higher prices of petroleum and food items during the month. Looking ahead, the BSP will remain watchful of evolving inflationary environment to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” it added.
The Philippine Statistics Authority reported a 22-month low inflation rate of 2.7 percent in June from 3.2 percent in May, mostly because of softer price adjustments in some commodity groups such as food and non-alcoholic beverages.