By Joann Santiago
MANILA, July 27 (PNA) — Rate of price increases for July 2015 is seen to stay below the government’s full-year target at between 0.5-1.3 percent on sustained drop in oil prices.
In a text message to reporters Monday, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said inflation rate is seen to continue its downtrend after the drop to decades-low of 1.2 percent last June.
“Downward pressure could come from the lower local pump prices and power rates for the month,” he said.Inflation averaged at two percent in the first six months of this year, the lower end of the government’s two to four percent target for this year up to 2018.
Monetary officials earlier said inflation is seen to go down to the one percent level in the third quarter of the year due partly to base effect.
Inflation almost breached the upper band of the three to five percent target for 2014 in July and August last year due to spike in oil prices.
On the other hand, inflation is projected to go up but to a still within-target level in the last quarter of 2015 due to the impact of the extended dry spell. (PNA)