June inflation seen below BSP target

The country’s inflation rate, as measured by the consumer price index, is forecast to have remained below the central bank’s 2-4 percent target range for the second straight month in June, giving policymakers scope to cut interest rates if needed to support economic growth. The median forecast in a Reuters poll of 15 analysts was for the consumer price index to have risen 1.5 percent from a year earlier, slightly easing from 1.6 percent in May as cheaper energy costs probably offset higher school fees and food prices. The estimate is well within the central bank’s 1.1-2.0 percent projection for the month. Core inflation, which strips out volatile food and energy prices, was seen unchanged at 2.2 percent, while month-on-month inflation was expected at 0.26 percent compared with -0.1 percent in May. (Reuters)