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Philippine inflation at highest level in almost four years in June

The Philippine Bureau of Statistics reports that the Consumer Price Index (CPI) rose 6.1% on an annual basis in June. This is the highest level in almost four years and furthers the trend that the Philippine central bank may raise interest rates further.

Philippine CPI rose for the third consecutive month in June, exceeding the central bank’s inflation target of 2% to 4%, due to rising transportation and utility costs and higher food prices.

The CPI in the first half of 2022 averaged 4.4%.

The governor of the Philippine central bank (BSP) said last week that the BSP may raise interest rates further to support the weakening peso and curb inflation, although the BSP does not intend to tighten monetary policy to the same extreme as the U.S. Federal Reserve (Fed).

In the past, the BSP has pursued a tighter monetary policy to combat inflationary pressures by raising the interest rate by 0.25% at the May and June meetings.

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