Philippine Inflation May Hit 7.0% in June: BSP

Inflation could accelerate further to 7.0% this month due to higher electricity rates and vegetable prices, according to the Bangko Sentral ng Pilipinas (BSP) on Tuesday. The BSP expects inflation to settle within a range of 6.0% to 7.0% in June, higher than the 6.8% recorded in May and the 1.4% posted in June 2025. If the actual inflation figure falls within the forecast range, June would mark the third consecutive month above the central bank’s original 2.0% to 4.0% target for this year. Should inflation reach the upper end of 7.0%, it would be the highest since April’s 7.2%. “The decline [in] domestic oil prices and lower prices of major food items, such as rice and meat, may temper inflation for the month,” the BSP said. “However, higher electricity rates and vegetable prices could partly offset these downward price pressures,” it added. The Manila Electric Company (Meralco) announced a P0.1488 per kilowatt-hour (kWh) increase in its household electricity rate for June, bringing the overall rate to P14.4833 per kWh from P14.3345 per kWh in May. Distributors in other areas, such as Western Visayas, also announced higher rates for June due to an increase in prices at the Wholesale Electricity Spot Market (WESM). For full-year 2026, the BSP expects inflation to average 6.4%, before decelerating to 4.5% in 2027 and 3.1% in 2028. “The BSP will remain vigilant and guided by incoming data, particularly on inflation and growth prospects. It will continue to monitor recent developments in the Middle East for their implications on inflation and economic activity,” the central bank said. — VBL, GMA News