BSP expects July inflation at 0.5-1.3%, down from June's 1.4%

Inflation is expected to slow down further in July, according to the Bangko Sentral ng Pilipinas (BSP), with forecasts within 0.5% to 1.3%, a decrease from June's rate of 1.4%.

Higher meat and vegetable prices due to adverse weather conditions, increased electricity rates, elevated fuel costs, and peso depreciation are expected to drive upward price pressures.

However, these factors could be partially offset by the continued decline in rice prices following tariff reductions on imported rice.

The Philippine Statistics Authority (PSA) will release the official inflation figures on August 5.

Benign inflation has led the BSP to cut interest rates twice this year, totaling 50 basis points, with some analysts predicting another rate cut in August.