Global oil price increases are seen as a major upside risk to the Philippines' inflation…
BSP expects June inflation to be between 5.7 and 6.5 percent.
The domestic inflation rate is predicted to range from 5.7 percent to 6.5 percent in June 2022 as a result of sustained increases in oil prices and their effects on power prices.
The Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday that “increased prices of major food products and peso depreciation” are also among the inflationary pressures this month.
The cheaper cost of seafood and liquified petroleum gas (LPG) is thought to offset these considerations, the report concluded.
According to the BSP’s mandate of price and financial stability, it continued, “Looking ahead, the BSP will continue to closely watch developing price changes to enable early intervention to halt the appearance of future second-round impacts.”
The government’s target range of 2-4 percent was exceeded for the second consecutive month in May, and the forecast inflation rate for this month is greater than the 5.4 percent recorded in May of last year.
Inflation in the year’s first five months was on average 4.1 percent.
The central bank’s average inflation prediction for this year and the following year has been increased by the monetary authorities to 5% and 4.25%, respectively.
Previously, they were 4.6 percent for 2022 and 3.9 percent for 2023.