July inflation may reach at least 5.6%

Inflation in July likely settled within the 5.6 percent to 6.4 percent range, the Bangko Sentral ng Pilipinas said in a report by ABS-CBN.

The increase in consumer prices for the month is driven by the persistent rise in food prices, transport fare hikes and the peso depreciation, the BSP said in a statement. 

But lower oil prices, reduction in electricity rates in Meralco-serviced areas and the lower pork prices likely tempered "in part" the price pressures, the central bank said. 

The BSP said it is closely monitoring the emerging price developments and second-round effects in order to implement timely intervention.

The BSP earlier said inflation is likely to remain elevated for the rest of the year and the average could breach the 2 to 4 percent target in 2023.

The consumer price index (CPI) quickened to 6.1 percent in June.

Official inflation figures will be released by the Philippine Statistics Authority on Friday, August 5.