BSP Projects PH Inflation Decline in July

The Bangko Sentral ng Pilipinas (BSP) said in its month-ahead inflation forecast sees lower inflation for July 2023.

BSP’s forecasted inflation rate is said to settle within the range of 4.1% to 4.9%, the first since April 2022 to log an inflation rate below 5%.

According to the BSP, the decline in inflation can be attributed to the decline in prices of some basic commodities.

“Lower electricity rates, declines in the prices of meat, fruits, and fish items, the rollback in LPG prices, and the peso appreciation could contribute to downward price pressures during the month,” BSP said.

BSP added that they will continue to monitor inflation to create monetary policies that will help ease the effect of inflation in the country.

“Meanwhile, higher prices of rice and vegetables as well as higher domestic oil prices are the primary sources of upward price pressures in July. 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,” BSP added.

Since its peak in January at 8.7%, this is the sixth consecutive month that inflation has eased in the country. (ASC)