PHILIPPINE inflation picked up in June, the first full month that saw Metro Manila easing quarantine restrictions, government data released Tuesday showed.
Headline inflation rose 2.5 percent in June, the first acceleration noted in five months the Philippine Statistics Authority (PSA) said, due to the upward trend in transport costs among others.
This is at the upper range of the Bangko Sentral ng Pilipinas’ (BSP) forecast of 1.9 to 2.7 percent, while a Reuters poll of 13 economists showed a median estimate of 2.2 percent inflation in June.
Core inflation, which excludes volatile food and fuel prices, was at three percent.
BSP Gov. Benjamin Diokno earlier said, inflation is the “least of their worry” at the moment, as it stands ready to use a “full range” of monetary tools as needed to support the economy.
The BSP forecast inflation to average 2.3 percent this year and 2.6 percent in 2021, higher than the April estimates but well within the official target of two to four percent for both years.
Economic recovery is likely to drag due to the coronavirus pandemic, ING Philippines senior economist Nicholas Mapa earlier said.
“Until we get that vaccine out and everyone is protected against COVID-19, we’re going to see this very gradual grind in terms of economic growth, very limited room for commodity prices to really pickup the phase,” Mapa said.
The Philippine economy could contract up to 3.4 percent this year due to the coronavirus pandemic, based on government estimates.(ABS-CBN News)
