Bangko Sentral sees slow inflation continuing in June

MANILA — The Bangko Sentral ng Pilipinas sees inflation in June ranging from 1.1 to 1.9 percent. This is slower than even the 2 to 4 percent target range of economic managers. 

According to the central bank, upward price pressures for the month are likely to be driven by higher meat and vegetable prices, elevated oil prices, and the depreciation of the peso. 

"These pressures, however, could be partially offset by lower prices of rice, fish, and fruits, as well as lower electricity rates," the BSP said.

Inflation has been steadily declining this year from 2.9 percent in January to 1.3 percent in May, which was the slowest in five years and below even the country's 2 to 4 percent target range.

The Philippine Statistics Authority credited the deceleration to the decreases in prices of basic goods, primarily rice, which has fallen since the reduction in the tariffs on rice imports. The slower inflation has allowed the BSP to cut interest rates by 50 basis points this year.

The PSA is set to announce the official inflation figures on Friday, July 4.