The Bangko Sentral ng Pilipinas (BSP) said inflation likely fell to as low as less than 1 percent in July.

The BSP said inflation is projected to settle within the range of 0.5 percent to 1.3 percent during the month.

"Upward price pressures for the month are likely to be driven by higher meat and vegetable prices partly due to unfavorable weather conditions, increased electricity rates, elevated domestic fuel costs, and the depreciation of the peso," the BSP said.

The BSP, however, said that these price pressures could be partially offset by the continued decline in rice prices.

"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 decision-making," it said.

Headline inflation settled at 1.4 percent in June.

The Philippine Statistics Authority is scheduled to release the July inflation data on Aug. 5.

PNA PHOTO