To keep the country’s inflation rate within the target band, the Bangko Sentral ng Pilipinas (BSP) will remain on guard against challenges posed by the coronavirus pandemic.
The increases in commodity prices in the international market due to supply-chain factors and the recovery in global demand are upside risks to domestic inflation, BSP Governor Benjamin Diokno said.
But these risks are expected to be countered by the emergence of new coronavirus disease 2019 (Covid-19) variants and delays in easing lockdown measures, he said.
The country’s inflation rate decelerated further to 4 percent in July from the previous month’s 4.1 percent. Last month’s figure brings the seven-month average to 4.4 percent, which is still above the government’s 2 percent to 4-percent target band.
Diokno said last month’s inflation rate is within the central bank’s 3.9 percent to 4.7 percent forecast range.