BSP eyes 1.5-2.4% inflation rate for June ‘16

Bangko Sentral ng Pilipinas (Photo: BSP’s Facebook page)

MANILA – Hike in tuition fees for school year 2016-17 is seen as among the reasons for an uptick in inflation rate for June 2016, the Bangko Sentral ng Pilipinas (BSP) said Tuesday.

BSP Governor Amando Tetangco Jr., in a text message to reporters, identified other upside pressures to the rate of price increases and these are the increases in the prices of rice and vegetables.

These, however, are seen to be countered by the lower rate of electricity and domestic oil prices.

“Going forward, the BSP will continue to monitor evolving price trends to ensure price stability conducive to a balanced and sustainable economic growth,” Tetangco added

Domestic inflation posted an uptick last May to 1.6 percent from month-ago’s 1.1 percent but monetary officials said this is not unusual and in line with their projections.

In the first five months this year, inflation averaged at 1.3 percent, still below the government’s two to four percent target for 2016-18.

Excluding volatile oil and food items, core inflation also rose to 1.6 percent from last April’s 1.5 percent resulting to a 1.5 percent average for the five-month period.