June 2023 Inflation: Encouraging trend calls for revised forecasts
Inflation further eased in June, both headline and core, and may reach the BSP’s target range of 2%-4% towards the end of the year. As a result, we adjusted our inflation forecasts.
Headline inflation continued to decline to 5.4% in June 2023, lower than the BusinessWorld’s median analyst estimate of 5.5% and Metrobank Research’s 5.8% forecast. This latest inflation development is driven by slower price upticks of food and non-alcoholic beverages, transport, housing, water, electricity, gas, and other fuels.
Given this, Metrobank has revised its full year average inflation estimates to 5.8% (from 6.0%) for 2023 and 4.3% (from 4.5%) for 2024, as inflation is seen to hit the target range earlier than anticipated, and as the latest print further supports that inflation will continue to ease all the way through 2024.
Check our latest inflation report and outlook for further details.
June 2023 Inflation Report
With the latest inflation data, we have adjusted our outlook for 2023 and 2024.Download