July inflation seen to remain low

Facade of Banko Sentral ng Pilipinas / Wikipedia Photo

MANILA — The central bank sees the inflation to settle within the projected range of 0.5 percent to 1.3 percent for July.

This, according to the Banko Sentral ng Pilipinas (BSP)  is based on the estimated impact of lower petroleum pump prices and power rates on the consumer price index.

“Following the significant deceleration in inflation in June, the BSP’s forecasts suggest July inflation could remain low and settle within the 0.5 percent to 1.3 percent range,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said in a text message to reporters on Monday.

“Downward pressure could come from the lower local pump prices and power rates for the month,” Mr.

Tetangco said.

Tetangco added that they will continue to “monitor domestic and global developments to ensure that the policy stance remains supportive of price stability conducive to a balanced and sustainable economic growth.”

Last month, the inflation brought the average rate to 2% with The Monetary Board cutting its forecasts to 2.1% from 2.3% and to 2.5% from 2.6%, respectively, within a 2%-4% inflation target for this year and next year.

Inflation dropped  to its slowest  at  1.2 percent in June, decelerating from 1.

6 percent in May and 4.4 percent in the year-earlier period.