Philippines Inflation May Hit 6.6% in July: BSP

The Bangko Sentral ng Pilipinas (BSP) forecasts inflation could accelerate to as high as 6.6% in July, a slight increase from June's 6.4% and significantly higher than the 0.9% recorded in July 2025. According to the central bank, upside price pressures during the month are expected to stem from elevated domestic petroleum pump prices, higher electricity rates, increasing fish prices, and the depreciation of the peso against the strengthening US dollar. Latest data from the Department of Energy (DOE) show year-to-date pump price adjustments at a net increase of P56.72 per liter for gasoline, P57.75 per liter for diesel, and P52.61 per liter for kerosene. Manila Electric Co. (Meralco) also raised its electricity household rate by P0.3428 per kilowatt-hour (kWH) in July, bringing the overall rate for a typical household to P14.8261 per kWh from P14.4833 per kWh in June. The Philippine peso traded at the P61:$1 level for all trading days of July, closing at P61.56:$1 on Thursday, July 30. It reached an all-time low of P61.847:$1 last Friday, July 24. The BSP noted that the depreciation of the peso against the US dollar contributes to higher import costs, thereby increasing inflationary pressures. However, these pressures are expected to be mitigated by lower prices of key food commodities, including rice, meat, vegetables, and fruits. The BSP stated it will remain vigilant and guided by incoming data, particularly on inflation and growth prospects, and will continue to monitor recent developments in the Middle East for their impact on inflation and economic activity. — RSJ, GMA News