The continued rise in global commodity prices and more pronounced second-round effects on domestic goods and services will trigger more price increases of local commodities ahead, the BSP said on Tuesday, after inflation shot up above 6 percent in June.
THE continued rise in global commodity prices and more pronounced second-round effects on domestic goods and services will trigger more price increases of local commodities ahead, the Bangko Sentral ng Pilipinas said on Tuesday, after inflation shot up above 6 percent in June.
Economists at the Bank of the Philippine Islands echoed the sentiment, saying inflation has probably not peaked yet in June and may continue to go up until October assuming oil prices will stay at current levels. Rizal Commercial Banking Corporation chief economist Michael Ricafort also said new taxes, which are being proposed for the government’s fiscal consolidation plan, could likely fuel higher inflation in the coming months.
“July inflation will likely push above 6 percent again and we believe this will be enough to convince BSP to whip out a more forceful 50 basis point rate adjustment
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