BUSINESS
Advocates Philippines
BSP Projects 5.3 To 6.1 Percent Inflation For June 2023
The Bangko Sentral ng Pilipinas (BSP) has projected that the inflation rate for June 2023 will settle within the range of 5.3 to 6.1 percent. Several factors, including higher prices of key food items, domestic oil prices, electricity rates, and the depreciation of the peso, are expected to exert upward pressure on prices during the month.
Among the primary sources of upward price pressures, the BSP highlighted the increased costs of essential food items such as rice, vegetables, and fish. These rising prices contribute significantly to the overall inflationary environment. Additionally, the recent hike in domestic oil prices and electricity rates will likely contribute to increased production costs, further influencing consumer prices.
The depreciation of the peso against other major currencies is another factor contributing to upward price pressures. A weaker peso makes imports more expensive, leading to higher costs for imported goods, which can be passed on to consumers.
However, there are also factors that may alleviate inflationary pressures to some extent. Lower prices of meat and fruits are expected to contribute to a decline in the overall inflation rate.
Furthermore, a rollback in liquefied petroleum gas (LPG) prices is anticipated, which will help ease price pressures for consumers using LPG for cooking and heating purposes.
Looking ahead, the BSP remains committed to closely monitoring developments that could impact inflation and economic growth. The central bank maintains a data-dependent approach to its monetary policy formulation, ensuring that policy decisions are based on accurate and up-to-date information.
By continuously evaluating economic indicators and trends, the BSP aims to strike a balance between managing inflation and fostering sustainable economic growth. These efforts are crucial in ensuring price stability and supporting the country's overall economic well-being.
As the month of June concludes, the BSP's projections will shed light on the current state of inflation and provide valuable insights for policymakers, businesses, and consumers alike.
Among the primary sources of upward price pressures, the BSP highlighted the increased costs of essential food items such as rice, vegetables, and fish. These rising prices contribute significantly to the overall inflationary environment. Additionally, the recent hike in domestic oil prices and electricity rates will likely contribute to increased production costs, further influencing consumer prices.
The depreciation of the peso against other major currencies is another factor contributing to upward price pressures. A weaker peso makes imports more expensive, leading to higher costs for imported goods, which can be passed on to consumers.
However, there are also factors that may alleviate inflationary pressures to some extent. Lower prices of meat and fruits are expected to contribute to a decline in the overall inflation rate.
Furthermore, a rollback in liquefied petroleum gas (LPG) prices is anticipated, which will help ease price pressures for consumers using LPG for cooking and heating purposes.
Looking ahead, the BSP remains committed to closely monitoring developments that could impact inflation and economic growth. The central bank maintains a data-dependent approach to its monetary policy formulation, ensuring that policy decisions are based on accurate and up-to-date information.
By continuously evaluating economic indicators and trends, the BSP aims to strike a balance between managing inflation and fostering sustainable economic growth. These efforts are crucial in ensuring price stability and supporting the country's overall economic well-being.
As the month of June concludes, the BSP's projections will shed light on the current state of inflation and provide valuable insights for policymakers, businesses, and consumers alike.
Jun 30, 2023
