The country’s inflation rate may stay above 4 percent in the coming months amid continuing pressure on pork and oil prices, likely prompting the Bangko Sentral ng Pilipinas (BSP) to hike interest rates.
This is according to a research note from the economic research team of Bank of the Philippine Islands (BPI), commenting on the slowdown in the annual inflation rate to 4.1 percent in June from 4.5 percent in the past three consecutive months.
BPI has revised its full-year inflation forecast to 4.3 percent from 4.5 percent, but this is still above the upper end of the BSP’s 2 percent to 4 percent target range.
“We continue to see upside risks that could keep inflation above 4 per…
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