WITHIN FORECAST RANGE. The continued uptick in the prices of commodities is seen to further push the inflation rate higher. The Bangko Sentral ng Pilipinas (BSP) said the rise in June 2022 inflation rate to 6.1 percent, from May's 5.4 percent, is within its forecast range. (PNA file photo)

MANILA – An inflation rate uptick to 6.1 percent in June was expected and it is seen to further accelerate mainly on the continued rise of commodity prices, the Bangko Sentral ng Pilipinas (BSP) said.
 
The latest inflation print is higher than the previous month’s 5.4 percent, bringing the average to date to 4.4 percent, higher than the government’s 2 percent to 4 percent target band.
 
In a statement on Tuesday night, the central bank said last month’s inflation rate is within the BSP’s 5.7 percent to 6.5 percent forecast range for June. 
 
“This is consistent with the BSP’s assessment of a continued uptick in inflation in the near-term as supply-side pressures persist,” it said. 
 
The BSP has forecast inflation to average 5 percent this year, 4.2 percent in 2023, and 3.3 percent in 2024. 
 
It said the rate of price increases has been forecast “to remain elevated over the coming months due to the continued rise in global commodity prices and more pronounced second-round effects on domestic goods and services.” 
 
“The balance of risks to the inflation outlook is likewise skewed to the upside for 2022 and 2023, with pressures emanating from the potential impact of higher global non-oil prices, the continued shortage in domestic fish supply, and pending petitions for transport fare hikes due to elevated oil prices,” it added.
 
The BSP said the weaker-than-expected global recovery and the possible reimposition of local coronavirus disease 2019 (Covid-19) restrictions due to a spike in infections continue to be the main downside risks to the outlook. 
 
It assured the public that monetary authorities are “prepared to undertake necessary policy actions to bring inflation back to a target-consistent path over the medium term and deliver on its primary mandate of price stability.” 
 
“The upward adjustment in monetary policy rates in May and June should help temper inflation expectations. At the same time, the BSP reiterates its support for the carefully coordinated efforts of other government agencies in implementing non-monetary interventions to mitigate the impact of persistent supply-side factors on inflation,” it said. (PNA)