Inflation may hit 6 percent in June — central bank

The central bank expects inflation to hit 6 percent in June or July due to a possible wage increase, fare hike and rising oil prices, before easing towards the end of the year. "We are seeing a peak in inflation in June or July. We are seeing higher than 5 percent, 5.5 percent, or approaching 6 percent," Bangko Sentral ng Pilipinas (BSP) Assistant Governor Cyd Tuano-Amador told reporters on Thursday. She said the central bank now expects inflation to average 5.1 percent instead of 4.64 percent this year and 3.7 percent instead of 3.45 percent next year. The inflation forecast would still fall within the BSP target of 3.5-5.5 percent this year and 3-5 percent next year. Inflation eased to 4.2 percent in the first quarter from 6.9 percent a year earlier, and picked up to 4.4 percent in March from 4.2 percent in February due to rising clothing, fuel, light and water, as well as service prices. Various groups are pushing for a P25 daily across-the-board wage hike, while transport groups are petitioning for 50-centavo rise in jeepney fares and a P10 increase in the flagdown rate for taxis. Inflation could average 4.4 percent instead of 5.1 percent this year and 3.2 percent instead of 3.7 percent next year in case the wage hike and fare increases disapproved. Amador said monetary authorities were still confident that inflation would fall within the BSP target for this year and next year. — NPA, GMANews.TV