BSP sees inflation accelerating between 5.7% to 6.5% in June

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Metro Manila (CNN Philippines, June 30) — Inflation could breach 6% this June amid higher commodity prices and the weaker peso, latest Bangko Sentral ng Pilipinas (BSP) estimates show.

In a statement Thursday, the BSP said it expects inflation to settle within the 5.7% and 6.5% range this month. This range surpasses May’s 5.4% pace, an over-three-year high, and the BSP’s target band of 2% to 4% for the entire 2022. 

“The continued increase in domestic oil prices, upward adjustment in electricity rates, higher prices of key food items, and peso depreciation are the primary sources of inflationary pressures during the month,” said the central bank.

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Lower costs of fish and liquefied petroleum gas could partially offset these, the BSP added.

“Looking ahead, the BSP will continue to monitor closely 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,” the BSP said.

This is the BSP’s last statement with Benjamin Diokno at its helm as Governor.

Diokno will be leading the Department of Finance under the administration of President Ferdinand “Bongbong” Marcos Jr., whose six-year term formally began past noon today.