Inflation seen slowing to as low as 0.5% in July

The central bank said Thursday that inflation likely slowed further in July, with the headline rate expected to fall between 0.5 percent and 1.3 percent for the month.

In a statement, the Bangko Sentral ng Pilipinas (BSP) attributed upward price pressures to higher meat and vegetable prices—partly due to unfavorable weather—alongside elevated domestic fuel costs, increased electricity rates, and peso depreciation.

“These price pressures could be partially offset by the continued decline in rice prices,” the BSP said.

The forecast follows a 1.4 percent inflation reading in June, the lowest recorded since September 2020.

The BSP said it will continue to monitor developments affecting inflation and economic growth, emphasizing its data-dependent approach to monetary policy.

The Philippine Statistics Authority is scheduled to release official July inflation figures on August 5.