Headline inflation may have already peaked, but persistent underlying price pressures, wage adjustments and looming food supply risks could keep the Bangko Sentral ng Pilipinas (BSP) on a tightening path for the rest of the year, according to economists cited by Philstar Biz.
The economists noted that while the headline inflation rate may have peaked, the more stubborn core inflation measures remain elevated. Wage adjustments in certain sectors and potential disruptions to food supply due to weather events and global trade conditions are seen as key factors that could sustain upward price pressures.
The BSP has already raised its policy rate by a cumulative 175 basis points this year to combat inflation. With the current outlook, analysts expect the central bank to deliver at least one more rate hike before the end of the year, with the possibility of further tightening if price risks materialize.