The Bangko Sentral ng Pilipinas (BSP) has forecast that annual consumer price inflation in the Philippines could reach as high as 7% in June, signaling a notable acceleration from recent levels.
The central bank attributed the projected rise to increasing electricity tariffs and higher vegetable prices, which are expected to offset declines in oil and other key food items.
This upward revision in the inflation outlook presents a challenge for policymakers who have been navigating a complex macroeconomic environment.
While lower oil prices have provided some relief to the broader basket of goods, the persistent pressure on essential utilities and fresh produce suggests that core inflationary pressures remain sticky.
The BSP’s assessment indicates that the pass-through of energy costs to consumers is continuing to weigh on household budgets.
The central bank’s projection underscores the vulnerability of the Philippine economy to supply-side shocks, particularly in the energy and agricultural sectors.