31-7-2023 (MANILA) In a bid to alleviate consumer price pressures, the Bangko Sentral ng Pilipinas (BSP) has projected a further decline in headline inflation for the month of July. The central bank, on Monday, estimated that the inflation rate for the month would fall between 4.1 per cent and 4.9 per cent, down from 5.4 per cent recorded in June.
While this trend may seem promising, BSP Governor Eli Remolona cautioned against premature celebration. Despite the anticipated easing, core inflation, which stood at 7.4 per cent in June, remains worryingly high. Additionally, the possibility of upside risks looms, calling for continued vigilance in managing consumer price levels.
A statement issued by the BSP pointed out several contributing factors to the expected decrease in inflation this month. These include lower electricity rates, price declines in meat, fruits, and fish items, a rollback in cooking gas prices, and the appreciation of the peso. Such factors may collectively exert downward pressure on prices.
As the BSP prepares for its next policy review on August 17, the central bank reiterated its commitment to a data-dependent approach in shaping monetary policies. The bank will closely monitor economic developments and their potential impact on both inflation and overall economic growth.
Inflation management remains a critical challenge for the Philippines, and the BSP aims to strike a balance between supporting economic growth and keeping inflationary pressures in check. The upcoming data release on August 4 will provide further insights into the country’s economic landscape and guide the BSP’s future policy decisions.
