MANILA — The Bangko Sentral ng Pilipinas (BSP) has announced its inflation forecast for July 2024, estimating it will range between 4 and 4.8 percent, an increase from last month's rate of 3.7 percent. This forecast reflects concerns over rising prices in several key sectors.
According to Philippines News Agency, The BSP pinpointed higher electricity rates and increased prices for agricultural commodities such as vegetables, meat, and fruits, along with rising domestic oil prices, as the primary contributors to the inflationary pressure this month. However, the central bank also noted that lower rice prices and the appreciation of the Philippine peso might help mitigate some of these increases. Looking forward, the BSP remains committed to a data-dependent approach to its monetary policy to ensure stability in the inflation and growth outlook. Meanwhile, BMI Fitch Solutions forecasts a growth in consumer spending to 6.2 percent this year, driven by easing inflationary pressures, a stable labor market, and lower interest rates, despite potential risks like prolonged inflation and economic downturns. The BMI also anticipates the inflation rate to stabilize within the government's target of 2 to 4 percent for 2024.