MANILA – Inflation could have accelerated by as much as 5.1 percent this June, driven by higher prices of rice and other agricultural products, according to the Bangko Sentral ng Pilipinas (BSP).
“The BSP Department of Economic Research projects the 2012-based June 2018 inflation to settle within the 4.3-5.1 percent range,” the central bank said.
The central bank cited weather-related disruptions kept the pressure on prices of rice and other agricultural commodities. Then there is also the price increase per kilogram of cooking gas.
The shortage in the supply of subsidized rice from the National Food Authority pushed prices of commercial rice varieties higher, while prices of liquefied petroleum gas (LPG) increased by P3.40 per kg – for cooking gas – and P1.90 per liter of auto LPG.
These could be tempered in part lower fuel prices, the central bank said, noting that electricity rates in Meralco-serviced areas also went down.
Manila Electric Co. (Meralco), the country’s largest power distributor, implemented a P1.43 per kilowatt hour reduction in this month’s electricity rates.
Inflation, or the rate of increase in the prices of goods and services, clocked in at 4.6 percent in May—its fastest in more than five years.
“Going forward, the BSP will continue to keep a watchful eye on the risks to the inflation outlook to help ensure price stability conducive to a balanced and sustainable growth of the economy,” the central bank said. (GMA News)
