BSP projects higher prices in June

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Filipinos paid more for food in June.

Metro Manila (CNN Philippines, June 29) .— Prices of basic goods and services may have risen even higher in June, the Bangko Sentral ng Pilipinas (BSP) said Friday, ahead of actual inflation figures coming out next week.

The BSP projects inflation to be as high as 5.1 percent in June, but says it may also come as low as 4.3 percent. The inflation rate uses the 2012 price as benchmark.

In May, inflation was at 4.6 percent, the highest level in five years.

The central bank added that the cheaper prices of fuel and electricity could partially offset the impact of the rising prices of rice and LPG.

"Upward price pressures from rice and other agricultural commodities due to weather-related disruptions as well as the increase in LPG prices could be partly tempered by the reduction in fuel prices and electricity rates in Meralco-serviced areas," the BSP said in a statement.

The BSP earlier raised interest rates by another 0.25 basis points to 3.5 percent over inflation concerns.

The central bank said while it expects inflation to fall back within the 2 to 4 percent target in 2019, inflation may remain high in 2018.