The Bangko Sentral ng Pilipinas (BSP) announced on Monday that inflation is expected to have moderated in July, coming close to the upper limit of the target range.

According to the central bank's statement, the inflation rate for July is projected to fall within the range of 4.1% to 4.9%, a decline from the 5.4% recorded in June.

The drop in inflation can be attributed to various factors, including lower electricity rates, decreases in the prices of meat, fruits, and fish items, a rollback in LPG prices, and the appreciation of the peso, all of which exert downward pressure on prices during the month.

"Meanwhile, higher prices of rice and vegetables as well as higher domestic oil prices are the primary sources of upward price pressures in July," the BSP said in a statement.

They also emphasized its commitment to closely monitoring developments that could impact inflation and economic growth.

“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” it said.