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Philippines: BSP sees inflation staying within target in July
MANILA, Philippines — Inflation likely stayed benign in July, the Bangko Sentral ng Pilipinas said Wednesday.
In a statement, the BSP’s Department of Economic Research said it expects July inflation to settle within the 2%-2.8% range.
The Philippine Statistics Authority will release the official July inflation data on August 6.
“Lower rice and domestic LPG prices along with downward adjustment in electricity rates and the recent peso appreciation are seen to temper inflation pressure during the month,” the central bank unit said.
“These could be partly offset by higher prices of petroleum and food items during the month,” it added.
Price growth continued its downtrend in June and stood at 2.7% driven by slower rate posted in food items. Year-to-date, inflation averaged 3.4%, well within the state’s 2%-4% annual target.
Many central banks around the world have begun slashing interest rates in a bid to power economic growth amid headwinds that are cooling the global economy. The BSP in May cut its benchmark rate by 25 basis points to 4.5% from a decade-high of 4.75%, and announced a three-step reduction in bank reserves to 16% from 18%.
Last month, the BSP decided to do a “prudent pause for the time being” and kept its key rate unchanged. Monetary authorities will meet again in August to review policy settings.
Source: https://www.philstar.com/business/2019/07/31/1939456/bsp-sees-inflation-staying-within-target-july#OG36lR70zZGQO19d.99