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Philippines: June inflation seen at 2.4-3.2% in June
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said it expects inflation to hover at a range of 2.4 percent to 3.2 percent in June following lower fuel and energy prices.
“The BSP forecast suggests that June inflation could settle within the 2.4 to 3.2 percent range,” BSP Governor Amando Tetangco Jr. said in a text message.
“The decline in domestic fuel prices and lower electricity rates in Meralco (Manila Electric Co.)-serviced areas could lead to lower price pressures for the month,” he said.
According to data from the Department of Energy, the price of gasoline as of June 21 went down to P45.25 per liter from P47.30 per liter in end-May.
The price of diesel likewise declined to P28.85 per liter from P31.40, and kerosene to P35.45 per liter from P37.70.
Meralco, meanwhile, decreased its electricity rates by P1.43 per kilowatt hour for a typical residential household, bringing down overall rate to P8.17 per kWh from P9.60 per kWh the previous month.
“Moving forward, the BSP will continue to monitor evolving price conditions and adjust policy setting appropriately to ensure price stability conducive to balanced and sustained economic growth,” Tetangco said.
Economic managers penned a GDP growth of between 6.5 percent and 7.5 percent this year as election-related spending boosted the expansion to 6.9 percent last year.
Inflation eased to 3.1 percent in May from 3.4 percent in April, bringing the average at 3.1 percent in the first five months, within the two to four percent target set by the central bank.
In its June 22 meeting, the Monetary Board slashed its inflation forecast for this year at 3.1 percent instead of 3.4 percent and three percent for 2018 and 2019, respectively.
BSP Deputy Governor Diwa Guinigundo said the forecast for this year was lowered as inflation outlook showed the future path of inflation is lower and expectations continue to be in line with the inflation target.
Tetangco said the inflation environment remains manageable as assessment of risks to the inflation outlook remains tilted toward the upside.
Source: http://www.philstar.com/business/2017/07/03/1715701/june-inflation-seen-2.4-3.2-june