THE Bangko Sentral ng Pilipinas (BSP) projects that inflation could accelerate to as high as 6.6% in July, driven mainly by rising pump prices and electricity rates.
The central bank estimates the headline figure will settle within the 5.6% to 6.6% range, compared to the 6.4% recorded in June and the much lower 0.9% posted in the same month last year.
Upside price pressures stem from several key factors: elevated domestic petroleum prices, higher electricity tariffs, increasing fish costs, and the peso’s depreciation against the US dollar. Year‑to‑date adjustments show net increases of ₱56.72 per liter for gasoline, ₱57.75 for diesel, and ₱52.61 for kerosene.
Manila Electric Co. also raised residential rates by ₱0.3428 per kilowatt‑hour this month, bringing the average household rate to ₱14.8261 per kWh. Meanwhile, the peso traded at the ₱61‑to‑a‑dollar mark throughout July, closing as low as ₱61.847 on July 24 before ending at ₱61.56 on July 30.
The BSP noted that these increases will be partially offset by easing prices of key food items such as rice, meat, vegetables, and fruits. The central bank assured that it will remain vigilant and base its next steps on incoming data regarding inflation and economic growth. It added that it is closely monitoring developments in the Middle East, as geopolitical shifts could further affect commodity costs and overall economic activity in the country.
metrosundaily
