Margie Markland

Inflation is seen to hit a high of near 5% due to higher electricity rates and price hikes in select agricultural commodities and oil, according to the latest projection by the Bangko Sentral ng Pilipinas (BSP).
Photos Courtesy of PNA/Oliver Marquez.

In its forecast on Wednesday, the BSP stated that the expected July 2024 inflation rate will clock in within the range of 4% to 4.8%.

The lower-end of the forecast range is faster than June’s inflation print of 3.7%.

“While inflation is projected to settle above the target range in July due to positive base effects, inflation is expected to return within the target range beginning in August,” the BSP said. 

The central bank emphasized that the faster increase in the prices of some commodities is expected to be offset by the lower prices of rice and fruits, along with the appreciation of the Philippine peso.

“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,” it added.

The Philippine Statistics Authority is scheduled to release the official inflation figures for the month of July on August 6.