HEADLINE inflation further increased to 6.1 percent year-on-year in June from 5.4 percent in the previous month.
This was within the BSP’s forecast range of 5.7-6.5 percent for the month.
The resulting year-to-date average inflation of 4.4 percent in the first half of 2022 is above the government’s average inflation target range of 2.0-4.0 percent for 2022.
On a month-on-month seasonally adjusted basis, inflation also increased to 1.0 percent in June from 0.5 percent in May.
The majority of commodity groups registered either higher or unchanged inflation rates in June with food and energy-related items continuing to be the key drivers.
Inflation rates for most food items increased (particularly for rice, meat, fruits, and sugar) while year-on-year vegetable inflation eased slightly but remained at double-digits.
Transport inflation also continued to rise due to higher fuel prices and jeepney fare hike in select regions.
The latest inflation reading remains consistent with the BSP’s assessment of a continued uptick in inflation in the near term due to persisting supply-side pressures. Looking ahead, the BSP will continue to be vigilant against the risks to inflation expectations and further second-round effects, and remains ready to undertake the necessary follow-through monetary policy action to safeguard its price stability objective.
At the same time, the BSP reiterates its support for the carefully coordinated efforts of other government agencies in implementing non-monetary intervention measures to mitigate the prolonged impact of supply-side factors on inflation.
