July 5th, 2024
As usual, it’s still about rice, but we are looking more at year-on-year effects now, rather than a continuing momentum of price increases. In other words, it’s not getting worse. It was 3.9 percent last month.
That said, I expect PBBM’s measures to reduce tariffs on rice and boost agricultural production will yield their results in the figures for next month.
Hopefully, El Nino’s impact on fuel, water, and electricity prices will also dissipate as the rains begin.
The BSP I think will remain relatively slow to make any moves on interest rates — until we see inflation in the 2-3 percent range. So, for now, no major shakeups in monetary policy.