Lower prices of fuel, rice and meat are expected to help slow inflation in June, although higher electricity rates and vegetable prices may limit the decline, according to the Bangko Sentral ng Pilipinas (BSP).
In a statement Tuesday, the central bank projected June headline inflation to settle within the 6 percent to 7 percent range.
“The decline in domestic oil prices and lower prices of major food items, such as rice and meat, may temper inflation for the month,” the BSP said.
The BSP said upward pressure from higher power rates and vegetable prices could partly offset the easing effect of lower fuel and food costs.
The central bank also said it will continue to monitor inflation and economic growth indicators before making policy decisions.
“The BSP will continue to monitor recent developments in the Middle East for their implications for inflation and economic activity,” it said.
Headline inflation was recorded at 6.8 percent in May.
