The Bangko Sentral ng Pilipinas (BSP) projects July inflation to settle within the range of 5.6 to 6.4 percent.

In June, inflation hit a three-year high of 6.1 percent.

Inflation for July is driven by the continued increase in food prices, further transport fare hikes, and peso depreciation.

Meanwhile, lower oil prices, reduction in electricity rates in Meralco-serviced areas, and lower pork prices are likely to temper in part the price pressures, BSP added.

The BSP said it will continue to monitor closely emerging price developments to enable timely intervention to arrest emergence of further second-round effects, consistent with BSP’s mandate of price and financial stability. DMS