BSP raises 2021 inflation forecast to 4%

The Bangko Sentral ng Pilipinas (BSP) raised its inflation forecast for 2021 from 3.9% to 4%, citing higher global crude oil prices and a more favorable global growth outlook.

However, the BSP expects inflation to ease in 2022 and 2023, with forecasts at 3% each year.

Deputy Governor Francisco Dakila Jr. noted that lower-than-expected May inflation and the strength of the peso counteract these factors.

Governor Benjamin Diokno added that price pressures on food commodities have eased due to favorable weather conditions and increased meat imports.