The Bangko Sentral ng Pilipinas (BSP) sees July inflation falling with the 5.1-5.8 percent range due to higher fuel and power rates, its economic bulletin said Tuesday.

The central bank said "increases in electricity rates in Meralco-serviced areas, water rate adjustments in Maynilad and Manila Water-serviced areas, domestic gasoline and LPG prices, jeepney fares, scheduled increase of tobacco excise tax and prices of rice and agricultural commodities could lead to upward price pressures during the month."

The bulletin added that domestic fuel prices showed "a slight downward adjustment."

In June, inflation reached 5.2 percent from May's 4.6 percent. On a year-ago basis, the figure was 2.5 percent

The BSP has raised policy rates for two straight months to counter inflation, which is on a five-year high.

The central bank said it "will continue to keep a watchful eye on the risks to the inflation outlook and will take necessary action to help ensure that inflation expectations remain firmly anchored to the target." DMS