July 1, 2003 - Stable prices of food, fuel and other consumer
commodities could have brought June inflation down to 2.6% from
2.7% in May. On the other hand, the peso depreciation, the rainy
season, higher school tuition rates, the seasonal demand for
school supplies and Meralco's unbundled charges could have pushed
up last month's inflation to 2.8%.
In the first five months, the average inflation rate has
gone down to 2.8% from 3.6% a year ago. While the NEDA expects
2003 inflation rate to average between 3.0%-3.5%, the Bangko
Sentral projects average inflation rate between 2.6%-3.0%.
Nevertheless, the government's inflation target remains at
4.5%-5.5%, allowing flexibility in setting monetary policy.
Last 5 June, the Monetary Board restored the tiering scheme
for bank placements with the BSP, making more funds available
for lending.
