June inflation seen to settle at 1.9% to 2.7%

THE Bangko Sentral ng Pilipinas (BSP) has projected the June 2020 inflation to settle within the 1.9 to 2.7 percent range.

Higher gasoline, diesel and kerosene prices as well as the uptick in the price of rice due to supply bottlenecks contributed to positive price pressures during the month. These could be partly offset by slightly lower LPG prices and electricity rates in Meralco-serviced areas during the month.

Looking ahead, the BSP said it will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the central bank’s price stability mandate.

Inflation in May further slowed down to 2.1 percent, mainly driven by the 5.6 percent annual drop in the transport index. The downtrend was also brought about by the deceleration in the annual rise of food and non-alcoholic beverages, clothing and footwear, furnishing, household equipment and routine maintenance of the house and recreation and culture. (PR)